In Problem 1, If Charlie's Utility Function Were X³_AX_B, If

question 22

Multiple Choice

In Problem 1, if Charlie's utility function were X³_AX_B, if apples cost 60 cents each, and if bananas cost 10 cents each, Charlie's budget line would be tangent to one of his indifference curves whenever

• A) 3X_B = 6X_A.
• B) X_B = 3X_A.
• C) X_B = X_A.
• D) X_A = 3X_B.
• E) 60X_A + 10X_B = M.