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:

Logic

The study of reasoning and argument, including the principles of correct reasoning and the analysis of valid inferences.

Role Conflict

A situation in which an individual faces competing expectations from different roles they assume in their life or career.

Interpersonal Conflict

A situation in which two or more people disagree, often emotionally, over issues of mutual concern.

Role Senders

Individuals or entities that communicate expectations and responsibilities to others, influencing behaviors and shaping roles within an organization.