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Astrid's Utility Function Is U(HA, CA) = HACA

Question 11

Multiple Choice

Astrid's utility function is U(HA, CA) = HACA. Birger's utility function is min{HB, CB}. If Astrids initial endowment is no cheese and 5 units of herring and if Birgers initial endowments are 6 units of cheese and no herring, then where p is a competitive equilibrium price of herring and cheese is the numeraire, it must be that demand equals supply in the herring market. This implies that


A) Astrid's utility function is U(H<sub>A</sub>, C<sub>A</sub>) = H<sub>A</sub>C<sub>A</sub>. Birger's utility function is min{H<sub>B</sub>, C<sub>B</sub>}. If Astrids initial endowment is no cheese and 5 units of herring and if Birgers initial endowments are 6 units of cheese and no herring, then where p is a competitive equilibrium price of herring and cheese is the numeraire, it must be that demand equals supply in the herring market. This implies that A) B) C) D) E)
B) Astrid's utility function is U(H<sub>A</sub>, C<sub>A</sub>) = H<sub>A</sub>C<sub>A</sub>. Birger's utility function is min{H<sub>B</sub>, C<sub>B</sub>}. If Astrids initial endowment is no cheese and 5 units of herring and if Birgers initial endowments are 6 units of cheese and no herring, then where p is a competitive equilibrium price of herring and cheese is the numeraire, it must be that demand equals supply in the herring market. This implies that A) B) C) D) E)
C) Astrid's utility function is U(H<sub>A</sub>, C<sub>A</sub>) = H<sub>A</sub>C<sub>A</sub>. Birger's utility function is min{H<sub>B</sub>, C<sub>B</sub>}. If Astrids initial endowment is no cheese and 5 units of herring and if Birgers initial endowments are 6 units of cheese and no herring, then where p is a competitive equilibrium price of herring and cheese is the numeraire, it must be that demand equals supply in the herring market. This implies that A) B) C) D) E)
D) Astrid's utility function is U(H<sub>A</sub>, C<sub>A</sub>) = H<sub>A</sub>C<sub>A</sub>. Birger's utility function is min{H<sub>B</sub>, C<sub>B</sub>}. If Astrids initial endowment is no cheese and 5 units of herring and if Birgers initial endowments are 6 units of cheese and no herring, then where p is a competitive equilibrium price of herring and cheese is the numeraire, it must be that demand equals supply in the herring market. This implies that A) B) C) D) E)
E) Astrid's utility function is U(H<sub>A</sub>, C<sub>A</sub>) = H<sub>A</sub>C<sub>A</sub>. Birger's utility function is min{H<sub>B</sub>, C<sub>B</sub>}. If Astrids initial endowment is no cheese and 5 units of herring and if Birgers initial endowments are 6 units of cheese and no herring, then where p is a competitive equilibrium price of herring and cheese is the numeraire, it must be that demand equals supply in the herring market. This implies that A) B) C) D) E)

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