A consumer has a utility function given by U = min{x1, 2x2}.If good 2 has a price of zero, the consumer will always prefer more of good 2 to less.
Correct Answer:
Verified
Q12: If preferences are quasilinear, then for very
Q13: If two goods are substitutes, then an
Q14: It is impossible for a person to
Q15: When other variables are held fixed, the
Q16: Prudence was maximizing her utility subject to
Q18: An inferior good is less durable than
Q19: If consumers spend all of their income,
Q20: A consumer has the utility function U(x,
Q21: Fred has a Cobb-Douglas utility function with
Q22: Harry has $10 to spend on cans
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents