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Ben has particular preferences over brioche buns and custard creams. He sees them as perfect substitutes for one another but tends to prefer having a
Ben has particular preferences over brioche buns and custard creams. He sees them as perfect substitutes for one another but tends to prefer having a roughly equal amount of each good. If he has more than 4 times more custard creams than brioche buns, then he is willing to trade two brioche buns for a custard cream. Otherwise, his preferences can be described by the utility function MB (b, c) = 5b + c. For the following questions, round your answers to three decimal places where necessary. Each part is worth 'I mark. a) Calculate NB (6, 30). H b) Calculate 14;; (6, 24). U c) Calculate uB(6, 18). H For the following two questions, choose the option that is the most correct. d) Ben's preferences are 0 e) Ben's preferences are d) Ben's preferences are monotone but not strongly monotone e) Ben's preferences are strongly monotone but not monotone monotone and strongly monotone neither monotone nor strongly monotonee) Ben's preferences are V convex but not strictly convex strictly convex but not convex convex and strictly convex neither convex nor strictly convex
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