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Charlie Has a Utility Function U(xA, XB)=xAxB, the Price of Apples

question 11

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Charlie has a utility function U(xA, xB) =xAxB, the price of apples is $1, and the price of bananas is $2.If Charlie's income were $320, how many units of bananas would he consume if he chose the bundle that maximized his utility subject to his budget constraint?

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Definitions:

Exports

Sales of goods or services produced in one country purchased by residents of another country.

Imported Goods

Goods brought into a country from abroad for sale.

Excise Tax

A tax levied on specific goods, services, or transactions, usually to discourage their use or generate revenue.

Tariff

A levy enforced by the government on products and services that are brought in from foreign countries.

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