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:

Differentia

The characteristic or set of characteristics that distinguishes one entity or concept from another within the same group or category.

Genus

In biology, a rank used in the classification of organisms that groups together species sharing common characteristics; in logic, it refers to a general term that describes a broad category.

Differentia

This refers to the traits or attributes that allow us to distinguish between different species within the same genus.

Genus

In biology, the rank in the classification hierarchy that is above species and below family, used to group species that share common characteristics.