Suppose consumers use k units of good X and w units of good Y in fixed proportion. Then, which of the following utility function represents this preference? X Y U(X,Y) = min{,. k' O U(X,Y) = kX + wY. O UCX.Y) = min. )U(X,Y) = wX + kY.

Suppose consumers use k units of good X and w units of good Y in fixed proportion. Then, which of the following utility function represents this preference? X Y U(X,Y) = min{,. k' O U(X,Y) = kX + wY. O UCX.Y) = min. )U(X,Y) = wX + kY.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose consumers use k units of good X and w units of good Y in fixed proportion. Then, which of the
following utility function represents this preference?
X Y
U(X,Y) = min.
k'w
O U(X,Y) = kX + wY.
X Y
O U(x.Y) = min.
) U(X,Y) = wX + kY.

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