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Astrid's Utility Function Is U(HA, CA) = HACA

Question 67

Multiple Choice

Astrid's utility function is U(HA, CA) = HACA. Birger's utility function is min{HB, CB}. 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) Astrid's utility function is U(H<sub>A</sub>, C<sub>A</sub>) = H<sub>A</sub>C<sub>A</sub>. Birger's utility function is min{H<sub>B</sub>, C<sub>B</sub>}. 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) B) C) D) E)
B) Astrid's utility function is U(H<sub>A</sub>, C<sub>A</sub>) = H<sub>A</sub>C<sub>A</sub>. Birger's utility function is min{H<sub>B</sub>, C<sub>B</sub>}. 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) B) C) D) E)
C) Astrid's utility function is U(H<sub>A</sub>, C<sub>A</sub>) = H<sub>A</sub>C<sub>A</sub>. Birger's utility function is min{H<sub>B</sub>, C<sub>B</sub>}. 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) B) C) D) E)
D) Astrid's utility function is U(H<sub>A</sub>, C<sub>A</sub>) = H<sub>A</sub>C<sub>A</sub>. Birger's utility function is min{H<sub>B</sub>, C<sub>B</sub>}. 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) B) C) D) E)
E) Astrid's utility function is U(H<sub>A</sub>, C<sub>A</sub>) = H<sub>A</sub>C<sub>A</sub>. Birger's utility function is min{H<sub>B</sub>, C<sub>B</sub>}. 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) B) C) D) E)

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