Max Gross has the utility function U(x, y) = max{x, y}. If the price of x is the same as the price of y, Max will buy equal amounts of x and y.

Name: Max Gross has the utility function U(x, y) = max{x, y}. If the price of x is the same as the price of y, Max will buy equal amounts of x and y.
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Quizplus · Accepted Answer

Max will buy only the good that provides the maximum utility, which means he will buy either x or y, but not necessarily in equal amounts.

Max Gross Has the Utility Function U(x, Y) = Max{x