Raymond's preferences are represented by the utility function U(x, y) = if y 0 and U(x, y) = 0 if y = 0.
A) Raymond has indifference curves that are rectangular hyperbolas.
B) Raymond prefers more of each good to less.
C) Raymond has quasilinear preferences.
D) Raymond has a bliss point.
E) Raymond has indifference curves that are upward-sloping straight lines if y 0.

Question

Raymond's preferences are represented by the utility function U(x, y) =  if y > 0 and U(x, y) = 0 if y = 0.
A) Raymond has indifference curves that are rectangular hyperbolas. 
B) Raymond prefers more of each good to less. 
C) Raymond has quasilinear preferences. 
D) Raymond has a bliss point. 
E) Raymond has indifference curves that are upward-sloping straight lines if y > 0.

Quizplus · Accepted Answer

The Answer of Raymond's preferences are represented by the utility function U(x, y) =  if y > 0 and U(x, y) = 0 if y = 0.
A) Raymond has indifference curves that are rectangular hyperbolas. 
B) Raymond prefers more of each good to less. 
C) Raymond has quasilinear preferences. 
D) Raymond has a bliss point. 
E) Raymond has indifference curves that are upward-sloping straight lines if y > 0.

Raymond's Preferences Are Represented by the Utility Function U(x, Y)