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

question 38

Multiple Choice

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.

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Definitions:

Biology

The science that studies living organisms and their interactions with one another and their environments.

Environment

The sum of all external conditions and influences affecting the life and development of an organism, encompassing natural, social, and built factors.

Organized Responses

Coordinated reactions by organisms or cells to internal or external stimuli.

Developing Organism

An organism in the stages of growth and development, evolving from early formation to maturity.