Astrid's Utility Function Is U(H_A, C_A) = H_AC_A

question 11

Multiple Choice

Astrid's utility function is U(H_A, C_A) = H_AC_A. Birger's utility function is min{H_B, C_B}. If Astrids initial endowment is no cheese and 5 units of herring and if Birgers initial endowments are 6 units of cheese and no herring, then where p is a competitive equilibrium price of herring and cheese is the numeraire, it must be that demand equals supply in the herring market. This implies that

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Definitions:

Operant Conditioning

A learning principle where behaviors are modified by the consequences that follow them, with rewards increasing desired actions and punishments reducing their occurrence.

Predictability

The ability to accurately forecast future events or behaviors based on patterns or prior knowledge.

Rescorla And Wagner

Psychologists who developed a model explaining how the strength of a stimulus-response association is determined in classical conditioning.

Instinctive Drift

The tendency of learned behavior to gradually revert to biologically predisposed patterns.