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

question 4

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 per unit, and the price of bananas $2 per unit.His income was $40 per day.If the price of apples increased to $1.50 and the price of bananas fell to $1, then in order to be able to just afford his old bundle, Charlie would have to have a daily income of

• A)$40.
• B)$20.
• C)$60.
• D)$81.
• E)$160.

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Definitions:

Angina

A condition marked by severe chest pain due to an inadequate blood supply to the heart.

Cardiomyopathy

A disease of the heart muscle that makes it harder for the heart to pump blood to the rest of the body, potentially leading to heart failure.

Heart Muscle

The muscle tissue of the heart, known as cardiac muscle, which is responsible for pumping blood throughout the body.

Anastomosis

A surgical connection made between two tubular structures, such as blood vessels or segments of the intestine.