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Larry's Utility Function Is U = 4X + 12Y

question 115

Essay

Larry's utility function is U = 4X + 12Y. Which property of consumer preferences does Larry's utility function violate? Explain your answer.


Definitions:

Labor Force Participation

The ratio of the labor force to the total working-age population, indicating the percentage of the population that is either employed or actively seeking employment.

Slope

The measure of the steepness or incline of a line or surface, often expressed as a ratio of rise to run or as an angle in degrees.

Price

The cost in currency anticipated, called for, or dispensed in payment for a thing.

Quantity Supplied

The amount of a good that producers are willing and able to sell at a given price over a certain period of time.

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