Charlie Has a Utility Function U(x_A, X_B)=x_Ax_B, the Price of Apples

question 20

Multiple Choice

Charlie has a utility function U(x_A, x_B) =x_Ax_B, the price of apples is $1, and the price of bananas is $2.If Charlie's income were $160, how many units of bananas would he consume if he chose the bundle that maximized his utility subject to his budget constraint?

• A)8
• B)40
• C)20
• D)80
• E)120

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Definitions:

Aponeurosis

A flat, broad tendon-like sheet of connective tissue that attaches muscles to the part it moves or to another muscle.

Tendon

A fibrous connective tissue that attaches muscle to bone, facilitating movement by transmitting the force generated by the muscle.

Dorsiflexion

The backward bending and contracting of your hand or foot, decreasing the angle between the dorsum (back) and the leg.

Plantar Flexion

The motion of moving the foot so that the toes are pointed downward, away from the leg.