Harvey Habit in Problem 9 Has a Utility Function U(c₁

question 18

Multiple Choice

Harvey Habit in Problem 9 has a utility function U(c₁, c₂) = min{c₁, c₂}. If he had an income of $430 in period 1 and $860 in period 2 and if the interest rate were 15%, how much would Harvey choose to spend on bread in period 1?

• A) $945
• B) $210
• C) $315
• D) $1,260
• E) $630

---

Definitions:

Securities Regulations

The body of laws and rules that govern the issuance, trading, and sale of securities to protect investors and ensure market integrity.

Intrastate Issues

Matters or disputes that arise within a single state's boundaries, without impacting other states.

Main Offices

The principal or headquarters of an organization where major administrative and management functions are conducted.

Manipulative And Deceptive Devices

Tactics or schemes designed to deceive or mislead people, often used in reference to fraudulent practices in securities trading.