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

question 6

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)80
• B)40
• C)8
• D)20
• E)120

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Definitions:

Unsaturated Fats

Fats containing one or more double bonds between carbon atoms, leading to lower melting points and generally found as liquids at room temperature.

Carbon Chains

Linear or branched sequences of carbon atoms that are the backbone of organic molecules, ranging in length and complexity.

Double Bonds

Chemical bonds formed by the sharing of two pairs of electrons between two atoms.

Polyunsaturated Fatty Acids

Polyunsaturated Fatty Acids are fats with more than one unsaturated carbon bond in the molecule, commonly found in plant and fish oils, providing nutritional benefits and influencing heart health.