Charlie's Utility Function Is U(x_A, X_B) = X_Ax_B

question 18

Multiple Choice

Charlie's utility function is U(x_A, x_B) = x_Ax_B. If Charlie's income were $40, the price of apples were $2, and the price of bananas were $6, how many apples would there be in the best bundle that Charlie could afford?

• A) 4
• B) 20
• C) 5
• D) 6
• E) 10

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Definitions:

Implicit

Something suggested or understood without being directly expressed.

Explicit

Clearly expressed or fully detailed, leaving no room for confusion or doubt.

Social Norms

Shared, unstated rules or standards of behavior that are considered acceptable within a group or society.

Family Members

Individuals who are part of an extended family, including parents, siblings, grandparents, and other close relatives.