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:

Allergy

An immune system reaction to a foreign substance, such as pollen, bee venom, pet dander, or a certain food, that doesn't cause a reaction in most people.

Nasal Discharge

Fluid ejected from the nose, which can vary in texture and color and may be a symptom of infection or allergy.

Common Cold

A viral infection of the upper respiratory tract characterized by symptoms like coughing, sneezing, and a runny nose.

Influenza

An extremely infectious virus that targets the respiratory system, leading to high fever, significant pain, and nasal congestion, frequently manifesting in widespread outbreaks.