Question: Ram cannot taste any difference between Coke (c) and Pepsi (p) and so he views one bottle of each as perfect substitutes.Which utility functions might
Ram cannot taste any difference between Coke (c) and Pepsi (p) and so he views one bottle of each as perfect substitutes.Which utility functions might reflects Ram'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?
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