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

question 9

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, the price of bananas used to be $2, and his income used to be $40.If the price of apples increased to $5 and the price of bananas stayed constant, the substitution effect on Charlie's apple consumption would reduce his consumption by

• A)8 apples.
• B)16 apples.
• C)13 apples.
• D)4 apples.
• E)None of the above.

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Definitions:

Contractions

Muscle tightenings that facilitate childbirth, also used to refer to abbreviations in language.

Birthing Center

A healthcare facility specializing in childbirth where the emphasis is often on providing a natural, family-centered experience.

Episiotomy

A surgical cut made at the opening of the vagina during childbirth, intended to help deliver the baby and prevent severe perineal tearing.

Fetal Heartbeat

The heart rate of a fetus, which can be detected as early as 5 to 6 weeks of pregnancy with ultrasound technology.