Q1. Bob has a utility function defined over goods 1 and 2: u(x1; x2) = min{6*x1 + x2, x1 + 2*x2} Consider Bob’s preferences represented by the utility function in Question 1. Which of the following is correct? (A) Bob’s preferences are not homothetic. (B) Bob’s preferences are not transitive. (C) Bob’s preferences are not convex. (D) A typical indifference curve for Bob’s preferences is a straight line. (E) None of the above

Q1. Bob has a utility function defined over goods 1 and 2: u(x1; x2) = min{6x1 + x2, x1 + 2x2} Consider Bob’s preferences represented by the utility function in Question 1. Which of the following is correct? (A) Bob’s preferences are not homothetic. (B) Bob’s preferences are not transitive. (C) Bob’s preferences are not convex. (D) A typical indifference curve for Bob’s preferences is a straight line. (E) None of the above

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics

Section: Chapter Questions

Problem 6QP

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