An Individual Has a Utility Function for Tennis Rackets (X)and $E = \left( \frac { 1 } { 3 } p _ { x } + p _ { y } \right) U$

question 10

Multiple Choice

An individual has a utility function for tennis rackets (x) and tennis balls (y) of the form U(x,y) = min (3x,y) .His or her expenditure function is given by

• A)\(E = \left( \frac { 1 } { 3 } p _ { x } + p _ { y } \right) U\) .
• B)\(E = \left( p _ { x } + 3 p _ { y } \right) U\) .
• C)\(E = \left( p _ { x } + \frac { 1 } { 3 } p _ { y } \right) U\) .
• D)\(E = \left( p _ { x } + p _ { y } \right) U / 3\) .

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Definitions:

Expressive Needs

Emotional or social needs that involve seeking emotional support, love, belonging, and self-expression.

Instrumental Needs

Emotionally neutral, task-oriented (goal-oriented) needs.

Secondary Groups

Groups characterized by impersonal, formal, and business-like relationships, often temporary and based on a specific purpose or goal.

Groupthink

The tendency for group members to reach a consensus at all costs.