Astrid's Utility Function Is U(H_A, C_A)= H_AC_A

question 29

Multiple Choice

Astrid's utility function is U(H_A, C_A) = H_AC_A.Birger's utility function is min{H_B, C_B}.If Astrid's initial endowment is no cheese and 13 units of herring and if Birger's initial endowments are 12 units of cheese and no herring, then where p is a competitive equilibrium price of herring and cheese is the numeraire, demand equals supply in the herring market.This implies that

• A)12/(p + 1)+ 6.50 = 13.
• B)12/13 = p.
• C)13/12 = p.
• D)12/p + 13/2p = 13.
• E)min{13, 12} = p.

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Globalization

The process of increasing interconnectedness and interdependence among countries worldwide through the exchange of goods, services, technology, and culture.

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The process of making things uniform or similar by blending disparate elements, often used in cultural, biological, and industrial contexts to describe the reduction of diversity.

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