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

question 23

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 $6 and the price of bananas stayed constant, the substitution effect on Charlie's apple consumption would reduce his consumption by

• A)8.33 apples.
• B)13.33 apples.
• C)5 apples.
• D)16.67 apples.
• E)None of the above.

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Definitions:

Voluntarily Retire

Choosing to withdraw from one's occupation or profession before the mandatory or expected age, often for personal, health, or lifestyle reasons.

Senility

An outdated term referring to the decline in mental function associated with aging, often related to conditions such as dementia.

Age Prejudice

Discrimination against individuals or groups based on their age, often manifesting as bias towards the young or elderly.

Primordial Discrimination

A form of discrimination that is believed to stem from early human tendencies to favor one's own group over others, often manifesting as innate or instinctive biases.