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Optimal choice, example Carla has utility function (,)=+2 over goods x and y a) Do we have a name for this type of utility function?
Optimal choice, example Carla has utility function (,)=+2 over goods x and y a) Do we have a name for this type of utility function? Are Carla's preferences well-behaved? b) Let Carla have budget I=$40, and let prices be Px=$2, Py=$8. What bundle will Carla consume? c) What if Carla's budget drops to $20? [Think about: could this utility function describe Carla's preferences over bread and ice cream?]
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