Harvey Habit Has a Utility Function U(c₁, C₂)= Min{c₁, C₂}

question 2

Multiple Choice

Harvey Habit has a utility function U(c₁, c₂) = min{c₁, c₂}.If he had an income of $430 in period 1 and $860 in period 2 and if the interest rate were 15%, how much would Harvey choose to spend on bread in period 1?

• A)$945
• B)$210
• C)$315
• D)$1,260
• E)$630

---

Definitions:

Environmental Law

A body of laws and regulations designed to protect the environment from harmful actions or processes, by governing the interaction of humanity and the natural environment.

White Collar Crime

Non-violent crime committed by individuals or corporations in the course of their professional lives, often involving financial wrongdoing or fraud.

Antitrust Laws

Legislation aimed at preventing anti-competitive practices in the marketplace.

Private Law

Private law governs the relationships between private individuals or institutions, dealing with matters like contracts, property, and family issues.