Joseph's Utility Function Is Given by X_A + 2x_B, Where

question 41

Multiple Choice

Joseph's utility function is given by x_A + 2x_B, where x_A denotes his consumption of apples and x_B his consumption of bananas. If a banana cost 50 cents and an apple costs also 50 cents, how many apples will he buy if his income is $10?

• A)20
• B)10
• C)0
• D)5

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Definitions:

Functional Needs

The specific requirements that consumers are looking to fulfill with a product or service.

Psychological Needs

Emotional or mental necessities that are essential for mental health and well-being, such as the need for love, esteem, or self-actualization.

Habitual Decision Making

A purchase decision process in which consumers engage with little conscious effort.

Unsatisfied Need

A condition or state where an individual's desires or requirements are not met, potentially creating a space for new products or services to fulfill that gap.