question archive "Lorenzo lives on X and Y only

"Lorenzo lives on X and Y only

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"Lorenzo lives on X and Y only. His utility function is U (X,Y) = min(3X+4Y; 7Y). The prices of both goods are positive. He will:

a. Never buy more X than Y;

b. Always buy equal amounts of the two goods;

c. Always buy more Y than X;

d. Always buy more X than Y;

e. More than one of the above is true."

 

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