The utility function U(x,y)= 2x + y is an apt description of the preferences when:
A)x is a left shoe and y is a right shoe.
B)x is nickels and y is quarters.
C)x is nickels and y is dimes.
D)x is pizza and y is cola.

Question

Quizplus · Accepted Answer

The utility function U(x,y)= 2x + y implies that the consumer values x twice as much as y. Since a nickel is worth 5 cents and a dime is worth 10 cents, the consumer values a dime (y) twice as much as a nickel (x), which aligns with the utility function.

The Utility Function U(x,y)= 2x + Y Is an Apt