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:

Big Five

A model that describes human personality using five broad dimensions: agreeableness, conscientiousness, neuroticism, openness, and extraversion.

Personality Dimensions

Broad categories or clusters of personality traits that are used to describe and understand individual differences in personality.

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The degree to which people like or are content with their job and its various aspects.

Narcissism

A psychological condition characterized by self-centeredness, a high need for admiration, and a lack of empathy.