Mac's utility function is U(x, y)=max{2x - y, 2y - x}.
A)Mac's preferences are quasilinear.
B)If Mac has more x than y, any increase in his consumption of y would lower his utility.
C)If Mac has more x than y, a decrease in his consumption of y would raise his utility.
D)Mac always prefers more of each good to less.
E)Goods x and y are perfect substitutes.

Question

Quizplus · Accepted Answer

If Mac has more x than y, then 2x - y > 2y - x, so his utility is determined by 2x - y. Increasing y would decrease the value of 2x - y, thus lowering his utility.

Mac's Utility Function Is U(x, Y)=max{2x - Y, 2y -