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Researchers have investigated the preferences over dinner and they have found that they take the following form: U = - 0.3 Chicken + 1.5 Steak
Researchers have investigated the preferences over dinner and they have found that they take the following form: U = - 0.3 Chicken + 1.5 Steak + 0.01 Fish - 3 Costs Costs= cost in dollars of the dinner Chicken= amount of chicken in pounds Steak= amount of steak in pounds Fish= amount of fish in pounds What does this tell you about the preferences of consumers over Chicken? consumers do not like chicken consumers like chicken in small amounts consumers like chicken less when they have a large amount of chicken consumers like chicken only when they do not have to pay for it
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