Martha's Utility Function Is U(x, Y) = Min{x + 2y

question 15

Multiple Choice

Martha's utility function is U(x, y) = min{x + 2y, 2x + y}. George's utility function is U(x, y) = min{ 2x + 4y, 4x + 2y}. If George and Martha have the same income and face the same prices for the goods x and y,

• A) George and Martha will both demand the same amount of y.
• B) Martha will always prefer George's consumption bundle to her own.
• C) George will always prefer Martha's consumption bundle to his own.
• D) George will demand more x than Martha demands.
• E) None of the above.

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Definitions:

Subsidiary Posting

A detailed entry process in accounting that involves recording transactions in subsidiary ledgers for a more comprehensive financial tracking.

General Ledger

A comprehensive record of all financial transactions over the life of a company, used to compile financial statements.

Cash Receipts

The accumulation of funds, usually through cash or checks, garnered by a company from its operational activities.

Accounts Payable

The amount of money a company owes to its suppliers or creditors for goods or services purchased on credit.