In Problem 1, Suppose That Morris Has the Utility Function

question 29

Multiple Choice

In Problem 1, suppose that Morris has the utility function U(b, w) = 7b + 21w and Philip has the utility function U(b, w) = bw. If we draw an Edgeworth box with books on the horizontal axis and wine on the vertical axis and if we measure Morris's consumptions from the lower left corner of the box, then the contract curve contains

• A) a straight line with slopepassing through the lower left corner of the box.
• B) a straight line with slopepassing through the upper right corner of the box.
• C) a curve that gets steeper as you move from left to right.
• D) a straight line running from the upper right corner of the box to the lower left.
• E) a curve that gets flatter as you move from left to right.

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Definitions:

Invariant Relationship

describes a consistent and unchanging association between variables regardless of different conditions or operations.

Stimuli

External factors or events that provoke a physiological or psychological response.

Linear Perspective

A cue for distance based on the fact that parallel lines seem to converge as they get farther away from the viewer.

Texture Gradients

A depth cue in visual perception, where the gradual change in appearance of a texture signals increasing distance from the observer.