On the Planet Hyperion Every Consumer Who Has Ever Lived

question 6

Multiple Choice

On the planet Hyperion every consumer who has ever lived has a utility function U(x, y) = min{x, 2y}.The currency of Hyperion is the doggerel.In 1850 the price of x was 1 doggerel per unit and the price of y was 2 doggerels per unit.In 2000, the price of x was 11 doggerels per unit and the price of y was 4 doggerels per unit.The Paasche price index of prices in 2000 relative to prices in 1850 is

• A)6.50.
• B)5.
• C)75.
• D)3.75.
• E)not possible to determine without further information.

---

Definitions:

Interrogatory

A written question which one party sends to another in a lawsuit, requiring a written answer as part of pre-trial discovery.

Complaint

The pleading in a civil case in which the plaintiff states his claim and requests relief.

Legal Privilege

A legal right that allows individuals to refuse to disclose information or allows certain communications to remain confidential.

Discovery

A pre-trial process in legal proceedings where both parties exchange information and evidence to prepare for trial.