Charlie Consumes Apples and Bananas $\mathbf{U}\left(X_{A}, X_{B}\right)=x_{A} x^{2} B$

question 11

Multiple Choice

Charlie consumes apples and bananas. His utility function is $\mathbf{U}\left(X_{A}, X_{B}\right) =x_{A} x^{2} B$
-refer to scenario above, , Charlie's utility function is x_Ax_B.The price of apples used to be $1 per unit, and the price of bananas $2 per unit.His income was $40 per day.If the price of apples increased to $1.75 and the price of bananas fell to $.25, then in order to be able to just afford his old bundle, Charlie would have to have a daily income of

• A)$76.
• B)$18.75.
• C)$56.25.
• D)$37.50.
• E)$150.

---

Definitions:

Genetic Predispositions

The increased likelihood of developing a particular disease based on a person's genetic makeup.

Psychological Dynamics

The underlying causes and processes that contribute to psychological phenomena or behavior.

Social Dynamics

The patterns and changes in human interactions and relationships within a society over time.

Physiological States

Refers to the conditions of the body and its functions, including aspects like heart rate, hormone levels, and energy use, reflecting overall health and well-being.