Joe Bob's Cousin Peter Consumes Goods 1 and 2

question 36

Multiple Choice

Joe Bob's cousin Peter consumes goods 1 and 2.Peter thinks that 4 units of good 1 is always a perfect substitute for 2 units of good 2.Which of the following utility functions is the only one that would not represent Peter's preferences?

• A)U(x₁, x₂)= min{2x₁, 4x₂}.
• B)U(x₁, x₂)=20x₁ + 40x₂ - 10,000.
• C)U(x₁, x₂)=2x₁ + 4x₂ + 1,000.
• D)U(x₁, x₂)= 4x²₁ +16x₁x₂ + 16x²₂.
• E)More than one of the above does not represent Peter's preferences.

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