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

question 8

Multiple Choice

Harvey Habit in Problem 9 has a utility function U(c₁, c₂) = min{c₁, c₂}. If he had an income of $440 in period 1 and $880 in period 2 and if the interest rate were 20%, how much would Harvey choose to spend on bread in period 1?

• A) $1,280
• B) $320
• C) $213.33
• D) $960
• E) $640

---

Definitions:

Severe Anxiety

A high level of anxiety that significantly interferes with daily activities, potentially leading to anxiety disorders.

Sample Tests

Evaluations or experiments conducted on a portion of a population or material to assess its behavior or characteristics.

Chapter Objectives

Clearly defined goals or purposes intended to be achieved by the end of a particular chapter in a textbook or course material.

Key Concepts

Fundamental ideas or principles that are central to understanding a topic or subject area.