Lorenzo Lives on X and Y Alone

question 50

Multiple Choice

Lorenzo lives on x and y alone.His utility function is U(x, y) =min{3x + 4y, 7y}.The prices of both goods are positive.He will

• A)never buy more x than y.
• B)buy equal amounts of the two goods.
• C)always buy more y than x.
• D)always buy more x than y.
• E)More than one of the above is true.

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Definitions:

Mannequin

A life-sized model of the human body, often used in retail to display clothes or in art for drawing reference.

Illusion

A perception that misleadingly represents reality.

Amplitude

In physics, the maximum extent of a vibration or oscillation, measured from the position of equilibrium.

Loudness

A subjective measure of the sound pressure level, perceived as the intensity or volume of a sound.