Q 44

Lorenzo lives on x and y alone. His utility function is U(x, y) = min{ 3x + 4y, 7y}. The prices of both goods are positive. He will
A) never buy more x than y.
B) buy equal amounts of the two goods.
C) always buy more y than x.
D) always buy more x than y.
E) More than one of the above is true.

Q 45

Mort's utility function is U(x_{1}, x_{2}) = x_{1}x_{2}. His income is $100. The price of good 2 is $10. Good 1 is priced as follows. The first 6 units cost $10 per unit and any additional units cost $5 per unit. What consumption bundle does Mort choose?
A) (5, 5)
B) (7, 3.5)
C) (9, 3)
D) (6, 4)
E) None of the above.

Q 46

Clara's utility function is U(x, y) = (x + 2)(y + 1). If her marginal rate of substitution is -4 and she is consuming 14 units of good x, how many units of good y must she be consuming?
A) 30
B) 68
C) 18
D) 63
E) 9