Question

5. Problems 3.5 The Phillie Phanatic (PP) always eats his ballpark franks in a special way; he uses a foot-long hotdog together with precisely one-half of a bun, 1 ounce of mustard, and 2 ounces of pickle relish. His utility is a function only of these four items, and any extra amount of a single item without the other constituents is worthless Let: h- hotdogs b-buns mmustard (in ounces) rrelish (in ounces) Which of the following forms best represents PP's utility function for these hour goods? O U( h, b. m, r-min(h, 2b, m, 0.5r) O U(h, b, m, r)- max(h, 2b, m, 0.5r) O U(h, b, m, r)h0.5b m2r O U(h, b, m, r)h2b m0.5r PP's utility can be simplified to be a function of only one good In making this simplification, PP's utility function would likely be a function of Suppose foot-long hotdogs cost $1.00 each, buns cost $0.50 each, mustard costs $0.05 per ounce, and pickle relish costs $0.15 per ounce. When PP's utility function is simplified to a function of only one good, one unit of this good would cost If the price of foot-long hotdogs increases by 50% (to $1.50 each), the percentage increase in the price of the single good (when PP's utility function is simplified to a function of only one good) is

Answer 1

Question 5)

Since 4 goods are consumed in a fixed proportions , so preferences are of leontieff type , so minimum preferences

So option a is right.