Charlie Has a Utility Function U(x_A, X_B) = X_Ax_B, the Price

question 45

Multiple Choice

Charlie has a utility function U(x_A, x_B) = x_Ax_B, the price of apples is $1, and the price of bananas is $2. If Charlie's income were $120, how many units of bananas would he consume if he chose the bundle that maximized his utility subject to his budget constraint?

• A) 30
• B) 15
• C) 60
• D) 6
• E) 90

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