Question

Goluki's preferences are given by the following utility function: U(q1, q2) =  q11/3 +  q21/3, where  q1 is the...

Goluki's preferences are given by the following utility function: U(q1, q2) =  q11/3 +  q21/3, where  q1 is the number of cups of tea and  q2 is the number of cookies. Select all that applies:

a.

Her preferences satisfy "more is better"
b.

Her indifference curves are downward sloping
c.

Her income-consumption curve is a straight line
d.

Cookies is an inferior good for her
e.

Her demand function for cookies is downward sloping
f.

Her Engel curve for tea is upward sloping
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Answer #1

The statements that apply to the given utility function are :

  • More is better.
  • IC are downward sloping
  • ICC is a straight line
  • Demand function for cookie is downward sloping
  • Engel curve is upward sloping

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