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

question 20

Multiple Choice

Charlie consumes apples and bananas. His utility function is $\mathbf{U}\left(X_{A}, X_{B}\right) =x_{A} x^{2} B$
-refer to scenario above, Charlie's utility function is x_Ax_B.The price of apples used to be $1, the price of bananas used to be $2, and his income used to be $40.If the price of apples increased to $4 and the price of bananas stayed constant, the substitution effect on Charlie's apple consumption would reduce his consumption by

• A)15 apples.
• B)3 apples.
• C)7.50 apples.
• D)12.50 apples.
• E)None of the above.

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Definitions:

Great Person

A concept referring to individuals who have had a significant and positive impact on history, culture, or society through their exceptional abilities, leadership, or achievements.

Largely Abandoned

Refers to something that has been mostly or completely deserted or forsaken, often in the context of places, practices, or ideas.

Social Influence

The effect that the words, actions, or mere presence of other people have on our thoughts, feelings, attitudes, or behaviors.

Obedience

A form of social influence where an individual follows the directions of an authority figure or a set of rules, often disregarding their own preferences or moral standings.