Consider the utility function U = min (5x, 7y). To increase satisfaction the consumer must consume
A) at least 5 units more of $x$
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

The utility function states that the satisfaction of the consumer is based on the minimum value between 5 times the amount of x and 7 times the amount of y. Therefore, to increase satisfaction, the consumer must consume more of both x and y since both values contribute to the utility function. Increasing only one of them would not necessarily increase satisfaction as it depends on which one has a greater impact on the overall value of the function.

Consider the Utility Function U = Min (5x, 7y) xxx B) at Least 7 Units More of Y C) More

Consider the Utility Function U = Min (5x, 7y) $x$ B) at Least 7 Units More of Y
C) More