Asked by
jerome williams
on Dec 04, 2024Verified
Suppose your utility function for food (F) and clothing (C) is u(F,C) = F + 4C. If you reduce your clothing consumption by 2 units, how much do you have to increase your food consumption in order to maintain the same utility level?
A) 2 units
B) 4 units
C) 6 units
D) 8 units
Utility Function
A mathematical representation of how consumer preferences are ordered for different goods or bundles of goods.
Utility Level
A quantification of the satisfaction or happiness obtained from consuming a set of goods and services.
Food Consumption
The amount of food eaten by individuals or populations, considered in terms of quantity, frequency, and types of food, influencing nutritional status and health.
- Ascertain the utility function and recognize its significance within consumer choice theory.
Verified Answer
AS
Learning Objectives
- Ascertain the utility function and recognize its significance within consumer choice theory.