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Charlie Consumes Apples and Bananas U(XA,XB)=xAx2B \mathbf{U}\left(X_{A}, X_{B}\right)=x_{A} x^{2} B

question 15

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Charlie consumes apples and bananas. His utility function is U(XA,XB) =xAx2B \mathbf{U}\left(X_{A}, X_{B}\right) =x_{A} x^{2} B
-refer to scenario above, Charlie's utility function is xAxB.The price of apples used to be $1 per unit, and the price of bananas $2 per unit.His income was $40 per day.If the price of apples increased to $2.25 and the price of bananas fell to $1.75, then in order to be able to just afford his old bundle, Charlie would have to have a daily income of

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Definitions:

Unfair Situation

A circumstance or condition that lacks justice, equity, or impartiality, often resulting in disadvantage or harm to individuals or groups.

Authority Figure

An individual who holds power or influence, often in a specific context like a parent, teacher, or leader, which enables them to guide or control others.

Financial

Pertaining to money or how money is managed, including activities related to banking, investment, credit, and budgeting.

American Dream

The idea that people can achieve personal success, no matter their origin or socioeconomic status, in a society that enables upward mobility for all its members.

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