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

question 54

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 $200, how many units of bananas would he consume if he chose the bundle that maximized his utility subject to his budget constraint?

• A) 25
• B) 50
• C) 10
• D) 100
• E) 150

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A state of being absorbed with thoughts or concerns about a specific issue or task, often to the exclusion of other considerations.

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