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

question 16

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 8 units of herring and if Birger's initial endowments are 7 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)7/p + 8 / 2p = 8.
• B)7/(p + 1)+ 4 = 8.
• C)8/7 = p.
• D)7/8 = p.
• E)min{8, 7} = p.

---

Definitions:

Insight Learning

A cognitive process in which a problem is suddenly understood or solved without the need for trial-and-error.

Free Play

Unstructured, voluntary play that allows children to develop their imagination, creativity, and decision-making skills through spontaneous activities.

Higher Order Conditioning

A classical conditioning process where a conditioned stimulus is paired with a new neutral stimulus, creating a second (often weaker) conditioned stimulus.

Response Generalization

The process by which a conditioned response starts occurring in response to stimuli that are similar but not identical to the original conditioned stimulus.