In Problem 1, If Charlie's Utility Function Were X⁶_AX_B, If

question 15

Multiple Choice

In Problem 1, if Charlie's utility function were X⁶_AX_B, if apples cost 40 cents each, and if bananas cost 10 cents each, Charlie's budget line would be tangent to one of his indifference curves whenever

• A) X_B = X_A.
• B) 6X_B = 4X_A.
• C) X_B = 6X_A.
• D) X_A = 6X_B.
• E) 40X_A + 10X_B = M.

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