A Consumer Has a Utility Function of the Form U(x

question 24

Essay

A consumer has a utility function of the form U(x, y) =x a + y b, where both a and b are nonnegative. What additional restrictions on the values of the parameters a and b are imposed by each of the following assumptions?
a. Preferences are quasilinear and convex, and x is a normal good.
b. Preferences are homothetic.
c. Preferences are homothetic and convex.
d. Goods x and y are perfect substitutes.

---

Definitions:

Vulnerable

Susceptible to physical or emotional harm or attack due to being in a position of less power or having fewer defenses.

Disclosure

The act of making new or confidential information known, which can relate to personal, financial, or legal matters.

Bad Manners

Inappropriate, rude, or impolite behaviors in social settings.

Talking Back

Responding defiantly or argumentatively, often considered disrespectful, especially in contexts of authority.