Max Gross Has The Utility Function U X Y Max X Y If The Price Of X Is The Same As Th 3345447

True/False Questions. For each question below, please answer “true” or “false” and explain why. An answer without an explanation will result in no credit. 2. (5 points) Max Gross has the utility function U(x,y) = max?{x, y}. If the price of x is the same as the price of y, Max will buy equal amounts of x and y. 3. (5 points) Charlie’s utility function is U(x,y) = xy^2. His marginal rate of substitution between x and y does not change if the amount of both goods doubles. 4. (5 points) In economic theory, the demand for a good must depend only on income and its own price and not on the prices of other goods.

Prof. Angela

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