In Problem 1, Charlie Has a Utility Function U(x_A, X_B)

question 2

Multiple Choice

In Problem 1, 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 $400, how many units of bananas would he consume if he chose the bundle that maximized his utility subject to his budget constraint?

• A) 100
• B) 20
• C) 200
• D) 50
• E) 300

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Definitions:

Variables

Elements or features that can vary or change within a study, experiment, or statistical analysis, impacting the outcome or results.

Sociological Construct

A concept or perception of an idea or object that is created through societal or cultural practices.

Variable

An attribute or characteristic that can assume different values or vary among individuals, entities, or across situations.

Grounded Theory

A research methodology used in social sciences to construct theories based on data systematically gathered and analyzed through a process of comparative analysis.