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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