Question

Saketa's utility function is given by:
U = x + 2x, x2 + x3
Shainaz's utility function is given by:
V = x + x
Which of the following statements is true?
A. Shainaz has a greater preference for x,, while Saketa has a greater preference for x,
B. Shainaz treats the two goods as perfect substitutes, while Saketa doesn't.
C. Shainaz has a greater preference for x,, while Saketa has a greater preference for x,
D. Both have the same preferences.​

Answer 1

Explanation:

B. shainz treats the goods as perfect subtitutes while saketa doesn't