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:

Ignore

To refuse to take notice of or acknowledge; to deliberately overlook or exclude.

Age-Related

Pertaining to the effects or changes that are associated with aging or the progression of age.

Young-Old

Older adults aged 65 to 74, who tend to be active, healthy, and financially and physically independent.

Middle Adulthood

describes a period in human development, typically considered to range from about 40 to 65 years of age, characterized by stability, growth, and reassessment in various aspects of life.