Ram cannot taste any difference between Coke (c) and Pepsi (p) and so he views one bottle
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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 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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