A consumer has a utility function . Which one of the following statements must be true?
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1 markMicroeconomicsConsumer preferences and utilityUtility functions and monotonic transformationsModerateabout 3 min
DSE 2008 Question 6: Consumer preferences and utility
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A consumer has a utility function U(x,y)=10(x²+4xy+4y²)+20. Which one of the following statements must be true? (A) The goods are imperfect substitutes (B) The goods are perfect substitutes (C) The goods are perfect complements (D) None of the above.
Also written as: A consumer has a utility function U(x,y)=10(x^2+4xy+4y^2)+20. Which one of the following statements must be true?
Consumer preferences and utility has come up 93 times in 7 exams since 2007.
What this question tests
This question is on Utility functions and monotonic transformations, part of Consumer preferences and utility in Microeconomics.
How ordinal utility represents preferences, and why any monotonic transformation of a utility function represents the same ones.
TestStop has 10 past-paper questions on this subtopic.
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