Ali likes classical music () but is irritated by western music (). Which of the following utility functions would best represent Ali's utility from classical and western type of music?
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1 mark, −0.33MicroeconomicsConsumer preferences and utilityIndifference curves and their propertiesModerateabout 1 min
UoH 2015 Question 95: Consumer preferences and utility
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Ali likes classical music (C) but is irritated by western music (W). Which of the following utility functions would best represent Ali's utility from classical and western type of music? (A) U = W⁰·⁵ · C⁰·⁵ (B) U = C/W (C) U = W/C (D) U = C · W
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What this question tests
This question is on Indifference curves and their properties, part of Consumer preferences and utility in Microeconomics.
What indifference curves look like for goods, bads and neutrals, and why they slope down and never cross.
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