Paul's Utility Function Is Min{x + 3y, 3x + Y}

question 2

Multiple Choice

Paul's utility function is min{x + 3y, 3x + y}. Simon's utility function is min{ 3x + 9y, 9x + 3y}. Paul and Simon have the same income and face the same prices.

• A) Paul and Simon will demand the same amount of good x.
• B) Paul will demand more of good y than Simon.
• C) Simon will demand more of good y than Paul.
• D) Each will prefer the other's consumption bundle to his own.
• E) None of the above.

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Definitions:

Neutral Object

An object that initially produces no specific response until it is associated with a meaningful stimulus through classical conditioning.

Masking Stimuli

External stimuli that interfere with the perception of other stimuli, impacting the ability to fully process what is being observed.

Motivation

The internal drive or process that propels individuals toward achieving goals or fulfilling needs.

Wavelength

The distance between two consecutive peaks or troughs in a wave, commonly used to describe the property of electromagnetic radiation.