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

Question 6

Multiple Choice

Astrid's utility function is U(HA, CA) = HACA. Birger's utility function is min{HB, CB}. If Astrids initial endowment is no cheese and 11 units of herring and if Birgers initial endowments are 4 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 Astrids initial endowment is no cheese and 11 units of herring and if Birgers initial endowments are 4 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 Astrids initial endowment is no cheese and 11 units of herring and if Birgers initial endowments are 4 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 Astrids initial endowment is no cheese and 11 units of herring and if Birgers initial endowments are 4 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 Astrids initial endowment is no cheese and 11 units of herring and if Birgers initial endowments are 4 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 Astrids initial endowment is no cheese and 11 units of herring and if Birgers initial endowments are 4 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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