In Problem 1, If Charlie's Utility Function Were X⁵_AX_B, If

question 6

Multiple Choice

In Problem 1, if Charlie's utility function were X⁵_AX_B, if apples cost 70 cents each, and if bananas cost 10 cents each, Charlie's budget line would be tangent to one of his indifference curves whenever

• A) 5X_B = 7X_A.
• B) X_B = X_A.
• C) X_A = 5X_B.
• D) X_B = 5X_A.
• E) 70X_A + 10X_B = M.

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