Charlie's Utility Function Is U(A, B)= AB, Where a and B

question 24

Multiple Choice

Charlie's utility function is U(A, B) = AB, where A and B are the numbers of apples and bananas, respectively, that he consumes.If Charlie is consuming 15 apples and 30 bananas, then if we put apples on the horizontal axis and bananas on the vertical axis, the slope of his indifference curve at his current consumption is

• A)-16.
• B)-2.
• C)-4.
• D)-1/2.
• E)-1/4.

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Definitions:

Perishable Goods

Items, especially food, that deteriorate quickly over time or if not stored under proper conditions.

Inspect Goods

The process of examining merchandise or commodities for quality, quantity, and condition to ensure they meet specified criteria.

COD

An abbreviation for Cash On Delivery, a transaction where payment for a good or service is made at the time of delivery.

UCC Section 2-301

A provision of the Uniform Commercial Code dealing with the obligation of the seller to transfer and deliver goods, and the buyer’s obligation to accept and pay for them.