Charlie's Utility Function Is X_Ax_B

question 14

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 $1.50 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

• A)$23.75.
• B)$47.50.
• C)$96.
• D)$71.25.
• E)$190.

Learn about the prevalence and typical perpetrators of sexual assault on children.

Understand the concept of neglect in child development and its consequences.

Evaluate societal perceptions and biases concerning victimization within different demographic groups.

Understand theories explaining domestic violence and their societal implications.

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Definitions:

Total Utility

The complete satisfaction or benefit a consumer receives from consuming a certain amount of goods or services.

Diminishing Marginal Utility

A common economic concept stating that as a person consumes more of a product, the satisfaction (utility) gained from each additional unit decreases.

Total Utility

It is the total satisfaction or benefit that a consumer derives from consuming a certain quantity of goods or services.

Additional Units

Refers to extra quantities or increments of a product or service that are made available or consumed.