Solved

Martha's Utility Function Is U(x, Y)= Min{x + 2y, 2x

Question 31

Multiple Choice

Martha's utility function is U(x, y) = min{x + 2y, 2x + y}.George's utility function is U(x, y) =min{2x + 4y, 4x + 2y}.If George and Martha have the same income and face the same prices for the goods x and y,


A) George and Martha will both demand the same amount of y.
B) Martha will always prefer George's consumption bundle to her own.
C) George will always prefer Martha's consumption bundle to his own.
D) George will demand more x than Martha demands.
E) None of the above.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents