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

question 16

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 Astrid’s initial endowment is no cheese and 13 units of herring and if Birger’s initial endowments are 8 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:

Bipolar Disorder

A mood disorder in which episodes of both depression and mania (excessive euphoria) occur.

Anxiety

A feeling of worry, nervousness, or unease, often about an imminent event or something with an uncertain outcome.

Cognitive Therapy

Cognitive therapy is a type of psychotherapy that focuses on changing unhelpful or destructive thought patterns to improve emotional regulation and develop personal coping strategies.

Antisocial Personality Disorder

A mental condition in which a person consistently shows no regard for right and wrong and ignores the rights and feelings of others.