Paul's utility function is min{x + 3y, 3x + y}.Simon's utility function is min{3x + 9y, 9x + 3y}.Paul and Simon have the same income and face the same prices.
A)Paul and Simon will demand the same amount of good x.
B)Paul will demand more of good y than Simon.
C)Simon will demand more of good y than Paul.
D)Each will prefer the other's consumption bundle to his own.
E)None of the above.

Question

Quizplus · Accepted Answer

Both Paul and Simon have utility functions that simplify to the same form, indicating they will demand the same amount of good x.

Paul's Utility Function Is Min{x + 3y, 3x + Y}