If Charlie's Utility Function Were X ²_A X_B, the Price

question 18

Multiple Choice

if Charlie's utility function were X ²_A X_B, the price of apples were p_A, the price of bananas were p_B, and his income were m, then Charlie's demand for apples would be

• A)m/(2p_A).
• B)0.50p_Am.
• C)m/(p_A + p_B).
• D)0.67m/p_A.
• E)1.50p_Bm/p_A.

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Definitions:

Interest Rate

The fraction of a loan that incurs interest charges for the borrower, usually indicated as an annual percentage of the remaining loan amount.

Cell A

In the context of matrices or spreadsheets, it typically refers to the top-left cell or the first cell in a table.

Compounded Annually

A method of calculating interest where the interest earned over a period is added to the principal, and the total becomes the basis for calculating interest in the next period, occurring once per year.

Positively Correlated

A relationship between two variables where both either increase or decrease together.