Dana cannot taste any difference between Coke (c) and Pepsi (p) and so she views one bottle of each as perfect substitutes. Dana's indifference curves form straight lines. The absolute value (or magnitude) of the Marginal Rate of Substitution of Coke for Pepsi is 1

Question

3.Which utility functions might reflects Dana's preference?

a.U(c,p)=c+p

b.U(c,p)= c+p

c.U(c,p)=2c+2p

d.U(c,p) = 2c+2p

e.U(c,p)=2c+p

f.U(c,p)=2c+p

g.U(c,p)=cp

h.U(c,p)= cp

4.Suppose Dana has a weekly budget of 10 dollars on Coke and Pepsi. Under what price conditions is it certain that Dana will buy only Coke?

a.Only when the price of Pepsi is 10 or more

b.None of the above conditions guarantee that Dana will buy only Coke

c.Whenever the price of Coke is lower than the price of Pepsi

d.Dana will always purchase a combination of Coke and Pepsi

e.Only when the price of Coke is 0