Question: 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
- 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: Which utility functions might reflects Dana's preference?
a. U(c,p)=c+p
b. U(c,p)= sqrt c+p
c. U(c,p)=2c+2p
d. U(c,p) = sqrt 2c+2p
e. U(c,p)=2c+p
f. U(c,p)=sqrt 2c+p
g. U(c,p)=cp
h. U(c,p)= sqrt cp
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