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Joe Bob's Cousin Peter Consumes Goods 1 and 2

Question 36

Multiple Choice

Joe Bob's cousin Peter consumes goods 1 and 2.Peter thinks that 4 units of good 1 is always a perfect substitute for 2 units of good 2.Which of the following utility functions is the only one that would not represent Peter's preferences?


A) U(x1, x2) = min{2x1, 4x2}.
B) U(x1, x2) =20x1 + 40x2 - 10,000.
C) U(x1, x2) =2x1 + 4x2 + 1,000.
D) U(x1, x2) = 4x21 +16x1x2 + 16x22.
E) More than one of the above does not represent Peter's preferences.

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