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.

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Definitions:

Radius

A straight line from the center to the circumference of a circle or sphere.

Diameter

A straight line passing from side to side through the center of a body or figure, especially a circle or sphere, measuring the overall distance across.

Standard Temperature

A baseline temperature used in scientific calculations, typically defined as 0°C or 273.15K.

Nonferrous Electrical Wire

A type of wire made from metals other than iron and steel, commonly used in electrical wiring due to its superior conductivity and resistance to corrosion.