Joseph's Utility Function Is Given by U_J =X_A + 2x_B

question 53

Multiple Choice

Joseph's utility function is given by U_J =x_A + 2x_B, where x_A denotes his consumption of apples and x_B his consumption of bananas.Clara's utility function is given by U_C =3x_A + 2x_B.Joseph and Clara shop at the same grocery store.

• A)When we observe that Joseph leaves the store with some bananas, then we can deduce that Clara also buys some bananas.
• B)There exist prices of apples and bananas such that both consumers buy strictly positive amounts of both goods.
• C)When we observe that Joseph leaves the store with some apples and some bananas, then we can deduce that Clara also buys some apples and some bananas.
• D)When we observe that Joseph leaves the store with some apples, then we can deduce that Clara also buys some apples.
• E)Apples and bananas are perfect complements for Joseph.

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Definitions:

Minor Problem

A relatively unimportant or trivial issue that does not have a significant impact on the overall situation or outcome.

Partner

Refers to a person who takes part in an undertaking with another or others, especially in a business or company with shared risks and profits.

Integrative Strategy

An approach that combines different methods, ideas, or systems into a comprehensive plan to solve problems or achieve objectives.

Avoidant Strategy

A coping mechanism in which individuals deal with stressors or threats by attempting to avoid dealing with them directly.