Consider the utility function U = min (5x,7y).To increase satisfaction the consumer must consume
A) at least 5 units more of
B) at least 7 units more of y
C) more of both x and y
D) more of either x or y

Question

Consider the utility function U = min (5x,7y).To increase satisfaction the consumer must consume
A) at least 5 units more of 
B) at least 7 units more of y 
C) more of both x and y 
D) more of either x or y

Quizplus · Accepted Answer

Since the utility function is U = min(5x,7y), the consumer's satisfaction depends on the smaller of the two quantities. Therefore, to increase satisfaction, the consumer should increase both x and y. If the consumer only increases one of the two, the other term will still be the minimum value, limiting the overall improvement in utility.

Consider the Utility Function U = Min (5x,7y)