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

question 27

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 $1.25 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)$13.75.
• B)$41.25.
• C)$27.50.
• D)$56.
• E)$110.

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Definitions:

Pulmonary Artery

The blood vessel that transports blood from the heart's right ventricle to the lungs to receive oxygen.

Pulmonary Vein

A vein that carries oxygenated blood from the lungs back to the left atrium of the heart.

Superior Vena Cava

The large vein that carries deoxygenated blood from the upper half of the body to the heart's right atrium.

Right Ventricle

The right ventricle is one of the four chambers of the heart, responsible for pumping deoxygenated blood to the lungs.