Harry Mazzola Has the Utility Function U(x₁, X₂)=min{x₁ + 2x₂

question 16

Multiple Choice

Harry Mazzola has the utility function U(x₁, x₂) =min{x₁ + 2x₂, 2x₁ + x₂}.He has $40 to spend on corn chips and french fries.If the price of corn chips is $4 per unit and the price of french fries is $2 per unit, then Harry will

• A)definitely spend all of his income on corn chips.
• B)definitely spend all of his income on french fries.
• C)consume at least as many corn chips as french fries but might consume both.
• D)consume at least as many french fries as corn chips but might consume both.
• E)consume equal amounts of french fries and corn chips.

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Definitions:

Market

A place or platform where buyers and sellers come together to exchange goods, services, or financial instruments.

Short Interest

The total number of shares of a particular stock that have been sold short by investors but have not yet been covered or closed out.

Bearish Signal

An indication in financial markets suggesting that the price of an asset may decline.

Bullish Signal

An indicator that suggests an asset’s price is likely to rise. These signals are perceived through various forms of market analysis, including technical indicators and trends.