The Maxwell School
Syracuse University
Syracuse University
Suppose a consumer buys two goods, orange juice and beer. In a survey of buying habits, the consumer is asked to rank the following four consumption bundles:
| Bundle |
Qty of Juice |
Qty of Beer |
| 1 |
1 |
1 |
| 2 |
2 |
1 |
| 3 |
1 |
2 |
| 4 |
3 |
1 |
The consumer reports that bundle 4 is best, 2 is second best, 3 is third best and 1 is the worst. Which of the following utility functions could be used to represent these preferences (where J and B are the consumption of juice and beer)? Explain in detail how you know.