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

question 45

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 8 units of cheese and no herring, then where p is a competitive equilibrium price of herring and cheese is the numeraire, it must be that demand equals supply in the herring market.This implies that

• A)13/8 = p.
• B)8/p + 13/2p = 13.
• C)8/13 = p.
• D)8/(p + 1)+ 6.50 = 13.
• E)min{13, 8} = p.

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The nominal value stated on a financial instrument, such as a bond or stock certificate.

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An unsecured, short-term debt instrument issued by corporations, typically used for financing payroll, accounts payable, and inventories.

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Interest that is computed solely on the initial sum invested or loaned, not taking into account any accumulated interest from previous periods.

Face Value

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