Which of the following utility functions represent preferences of a consumer who does not have homothetic preferences? A) U(x, y) = xy. B) U(x, y) = x + 2y. C) U(x, y) = x + y^.5. D) U(x, y) = min{x, y}. E) More than one of the above.

Question

Quizplus · Accepted Answer

The presence of S and P in the utility function indicates that the consumer has non-homothetic preferences. The other options have utility functions that are either linear or homogeneous, indicating the presence of homothetic preferences.

Which of the Following Utility Functions Represent Preferences of a Consumer