Which of the Following Functional Forms for Utility Suggests the Greatest

question 46

Multiple Choice

Which of the following functional forms for utility suggests the greatest substitution effect when starting at the point where $\mathrm { P } _ { \mathrm { X } } = \mathrm { P } _ { \mathrm { Y } }$

• A) \(\mathrm { U } = \min ( \mathrm { X } , \mathrm { Y } )\)
• B) \(U=X + X\)
• C) \(\mathrm { U } = \mathrm { X } ^ { 1 / 2 } \mathrm { Y } ^ { 1 / 2 }\)
• D)\(\mathrm { U } = \mathrm { X } ^ { 1 / 4 } \mathrm { Y } ^ { 3 / 4 }\)

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Definitions:

Parents

Caregivers of offspring in their own species; in humans, they typically provide support, education, love, and guidance to their children.

Foster Development

To support and encourage the growth, progress, or formation of something, often used in relation to educational, psychological or physical development.

Favorable Self-image

A positive perception or evaluation of oneself, reflecting a person’s beliefs about their own abilities, appearance, and value.

Authoritative

A parenting style characterized by high responsiveness and high demands, where parents set clear standards while being emotionally supportive.