Charlie's Utility Function Is X_Ax_B

question 30

Multiple Choice

Charlie's utility function is x_Ax_B.The price of apples used to be $1 per unit and the price of bananas was $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 $1.25, then in order to be able to just afford his old bundle, Charlie would have to have a daily income of

• A)$57.50.
• B)$116.
• C)$28.75.
• D)$86.25.
• E)$230.

---

Definitions:

Metropolitan Area

A region consisting of a densely populated urban core along with its less-populated surrounding territories, sharing industry, infrastructure, and housing.

Litter

A collection of carelessly discarded waste materials often found in public places.

Random Assignment

A procedure in experimental designs that ensures each participant has an equal chance of being placed in any group, eliminating selection bias.

Experimental Condition

A situation created in scientific research where variables are manipulated to test their effects on an outcome.