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

question 4

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 $1.50 and the price of bananas fell to $1, then in order to be able to just afford his old bundle, Charlie would have to have a daily income of

• A)$40.
• B)$20.
• C)$60.
• D)$81.
• E)$160.

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Definitions:

Corporations

Legal entities that can enter into contracts and own property. They are taxed at a lower rate than individuals and their owners are normally not liable for the corporation’s debt or any harm it may cause the public.

Consensus Crimes

Crimes that are universally condemned by society, such as murder or theft, and seen as inherently wrong.

Criminals

Persons who engage in activities that breach legal codes and are thus subject to judicial indictment and punishment; this definition reiterates their adversarial role against societal norms and laws.

Prison

An institution for the confinement and rehabilitation of individuals who have been convicted of crimes.