Solved

Which of the Following Functional Forms for Utility Suggests the Greatest

Question 46

Multiple Choice

Which of the following functional forms for utility suggests the greatest substitution effect when starting at the point where PX=PY\mathrm { P } _ { \mathrm { X } } = \mathrm { P } _ { \mathrm { Y } }


A) U=min(X,Y) \mathrm { U } = \min ( \mathrm { X } , \mathrm { Y } )
B) U=X+XU=X + X
C) U=X1/2Y1/2\mathrm { U } = \mathrm { X } ^ { 1 / 2 } \mathrm { Y } ^ { 1 / 2 }
D) U=X1/4Y3/4\mathrm { U } = \mathrm { X } ^ { 1 / 4 } \mathrm { Y } ^ { 3 / 4 }

Correct Answer:

verifed

Verified

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

Related Questions