Joe Bob's Cousin Leonard Consumes Goods 1 and 2

Joe Bob's cousin Leonard consumes goods 1 and 2.Leonard thinks that 2 units of good 1 is always a perfect substitute for 3 units of good 2.Which of the following utility functions is the only one that would not represent Leonard's preferences?

A) U(x₁, x₂) = 3x₁ + 2x₂ + 1,000.
B) U(x₁, x₂) = 9x²₁ +12x₁x₂ + 4x²₂.
C) U(x₁, x₂) =min{3x₁, 2x₂}.
D) U(x₁, x₂) = 30x₁ + 20x₂ - 10,000.
E) More than one of the above does not represent Leonard's preferences.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free