Joe Bob from Problem 12 has a cousin Don who consumes goods 1 and 2. Don thinks that 3 units of good 1 is always a perfect substitute for 2 units of good 2. Which of the following utility functions is the only one that would not represent Don's preferences?
A) U(x1, x2) = min{ 2x1, 3x2}.
B) U(x1, x2) = 20x1 + 30x2 - 10,000.
C) U(x1, x2) = 2x1 + 3x2 + 1000.
D) U(x1, x2) = 4x21 + 12x1x2 + 9x22.
E) More than one of the above does not represent Don's preferences.
Correct Answer:
Verified
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