In Problem 7, Harry Mazzola Has the Utility Function U(x₁

question 7

Multiple Choice

In Problem 7, Harry Mazzola has the utility function U(x₁, x₂) = min{x₁ + 2x₂, 2x₁ + x₂}. He has $40 to spend on corn chips and french fries. If the price of corn chips is $2 per unit and the price of french fries is $2 per unit, then Harry will

• A) definitely spend all of his income on corn chips.
• B) consume at least as many french fries as corn chips but might consume both.
• C) consume at least as many corn chips as french fries but might consume both.
• D) definitely spend all of his income on french fries.
• E) consume equal amounts of french fries and corn chips.

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Definitions:

Recognition

The process of identifying something or someone previously seen, known, or learned about.

Recall

The mental process of retrieving information from the past, without the aid of external cues.

Atkinson-Shiffrin Model

A theory of human memory that proposes memory is processed through three systems: sensory memory, short-term memory, and long-term memory.

Memory

The mental capacity to store, retain, and recall information and experiences from the past.