Final answer:
The utility maximization problem given the utility function U(q1, q2)=2q1+5q2 with the condition that p2/p1 > 25, leads to the conclusion that the uncompensated demand function for good 1 is 0. This is because the consumer will always prefer good 1 as the marginal utility per dollar spent on good 1 is always higher than that of good 2. The correct answer is: (a).
Step-by-step explanation:
To solve this problem, we need to apply the concept of utility maximization which is based on the comparison of the marginal utility to the price of goods. According to the question, the consumer's utility function is U(q1, q2)=2q1+5q2 and it is given that p2/p1 > 25. When comparing the ratio of the marginal utility to the price of each good, for the consumer to maximize utility, the ratio of the marginal utility of good 1 (which is 2) to its price p1 should equal the ratio of the marginal utility of good 2 (which is 5) to its price p2. Since p2/p1 > 25, this can never happen because the marginal utility per dollar spent on good 2 will always be less than that of good 1. Therefore, the consumer would always prefer good 1 over good 2, leading to the uncompensated demand function for good 1 being 0.
The correct answer is: (a) The uncompensated demand function for good 1 is 0. The other options can be ruled out because they either do not apply to the given utility function or do not meet the condition of p2/p1 > 25 stated in the problem.