On the Planet Hyperion Every Consumer Who Has Ever Lived

question 12

Multiple Choice

On the planet Hyperion every consumer who has ever lived has a utility function U(x, y) = min{x, 2y}. The currency of Hyperion is the doggerel. In 1850 the price of x was 1 doggerel per unit and the price of y was 2 doggerels per unit. In 2000, the price of x was 11 doggerels per unit and the price of y was 4 doggerels per unit. The Paasche price index of prices in 2000 relative to prices in 1850 is

• A) 6.50.
• B) 5.
• C) 2.75.
• D) 3.75.
• E) not possible to determine without further information.

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Definitions:

Alleles

Different forms of a gene that arise by mutation and are found at the same place on a chromosome.

Type AB Blood

A blood type in the ABO blood group system characterized by the presence of both A and B antigens on the surface of red cells.

Homozygous Varieties

Organisms that possess two identical alleles for a specific gene or trait.

Dominant

Refers to an allele that masks the effect of a recessive allele paired with it in heterozygous individuals.