Question
Kublai loves Chinese food including American Chinese dishes. Two popular Chinese dishes are General Tso' Chicken (GTC) and spicy Sichuan wontons (SW). If Kublai's utility
Kublai loves Chinese food including American Chinese dishes. Two popular Chinese dishes are General Tso' Chicken (GTC) and spicy Sichuan wontons (SW). If Kublai's utility function looks like
U = (GTC)(SSW), what kind of preferences does Kublai have over the two dishes, GTC and SSW?
A) The dishes are perfect substitutes for Kublai.
B) The dishes are perfect complements for him.
C) Kublai loves GTC but is neutral towards SSW.
D) Kublai has Cobb Douglas preferences over GTC and SSW.
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Macroeconomics Principles and Applications
Authors: Robert E. Hall, Marc Lieberman
6th edition
1111822352, 1111822354, 9781133708742 , 978-1111822354
