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A consumer's utility function is U(x 1 ,x 2 ,x 3 ,x 4 )=3x 1 +x 2 x 3 +x 4 x 5 -x 1
A consumer's utility function is U(x1,x2,x3,x4)=3x1+x2x3+x4x5-x1x5. How does the number of units of good 1 that the consumer is willing to give up in order to obtain an additional unit of good 3 change if only his consumption x5of good 5 changes?
a.
It goes up if x5goes up.
b.
It stays the same.
c.
None of the other answers.
d.
It goes down if x5goes up.
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