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Mac's utility function is U(x, y) = max( 2x - y, 2y - x).
a. Mac's preferences are quasilinear.
b. If Mac has more x than y, any increase in his consumption of y would lower his utility
c. If Mac has more x than y, a decrease in his consumption of y would raise his utility.
d. Mac always prefers more of each good to less '
e. Goods r and y are perfect substitutes.
Ans is b why not c?
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May 09, 2020; 8:07am
