Consider the utility function $\mathrm { U } = \min ( 5 \mathrm { x } , 7 \mathrm { y } )$ .To increase satisfaction the consumer must consume
A)at least 5 units more of
B)at least 7 units more of y
C)more of both x and y
D)more of either x or y

Question

Quizplus · Accepted Answer

Since both x and y are included in the utility function, increasing consumption of both x and y would lead to an increase in overall utility. This is because the utility function takes the minimum of (5x, 7y), therefore, increasing the consumption of both x and y would push the minimum up and increase the overall utility. Increasing only x or only y may not have the same impact on overall utility.

Consider the Utility Function U=min⁡(5x,7y)\mathrm { U } = \min ( 5 \mathrm { x } , 7 \mathrm { y } )U=min(5x,7y)

Consider the Utility Function $\mathrm { U } = \min ( 5 \mathrm { x } , 7 \mathrm { y } )$