Joseph's Utility Function Is Given by U_J = X_A

question 1

Multiple Choice

Joseph's utility function is given by U_J = x_A + 2x_B, where x_A denotes his consumption of apples and x_B his consumption of bananas. Clara's utility function is given by U_C = 3x_A + 2x_B. Joseph and Clara shop at the same grocery store.

• A) When we observe that Joseph leaves the store with some bananas, then we can deduce that Clara also buys some bananas.
• B) There exist prices of apples and bananas such that both consumers buy strictly positive amounts of both goods.
• C) When we observe that Joseph leaves the store with some apples and some bananas, then we can deduce that Clara also buys some apples and some bananas.
• D) When we observe that Joseph leaves the store with some apples, then we can deduce that Clara also buys some apples.
• E) Apples and bananas are perfect complements for Joseph.

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