Ernie's utility function is U (x,y) = xy. Ernie consumes 4 units of x and 16 units of y. A: Ernie likes x and y equally well so he is always willing to exchange 1 unit of either good for more than one unit of the other. B: None of all C: Ernie would be willing to make small exchanges of x for y in which he gives up 4 units of x for everyunit of y he gets. D: Ernie would be willing to trade away all of his x for y so long he gets more than 4 units of y for every unit of x he gives up.
Ernie's utility function is U (x,y) = xy. Ernie consumes 4 units of x and 16 units of y. A: Ernie likes x and y equally well so he is always willing to exchange 1 unit of either good for more than one unit of the other. B: None of all C: Ernie would be willing to make small exchanges of x for y in which he gives up 4 units of x for everyunit of y he gets. D: Ernie would be willing to trade away all of his x for y so long he gets more than 4 units of y for every unit of x he gives up.
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