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

question 10

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 $5, and the price of bananas were $8, how many apples would there be in the best bundle that Charlie could afford?

• A) 8
• B) 11
• C) 10
• D) 15
• E) 4

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Definitions:

Equilibrium Level

A condition where market supply and demand balance, resulting in stable prices and quantities.

Workers

Individuals engaged in physical or mental effort aimed at producing goods or providing services in return for wages, salaries, or other forms of compensation.

Type Of Cartel

A formation of producers within the same industry that coordinate to control supply and prices, effectively acting as a monopoly.

Introduction

The initial section or beginning part of a document, speech, book, or any piece of writing that gives an overview and prepares the audience for the information to follow.