Charlie's Utility Function Is X_Ax_B

question 7

Multiple Choice

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 $5 and the price of bananas stayed constant, the substitution effect on Charlie's apple consumption would reduce his consumption by

• A)4 apples.
• B)13 apples.
• C)8 apples.
• D)16 apples.
• E)None of the above.

Learn when to use different sentence lengths effectively within documents.

Understand the purposes and proper use of bulleted and numbered lists in business writing.

Recognize the utility of informative headings and subheadings in guiding readers through a document.

Comprehend the revision process and its significance in improving the first drafts.

---

Definitions:

Conflict

A struggle or clash between opposing forces or individuals, often involving a disagreement or competition.

Thwarted

Prevented from accomplishing a goal or fulfilling a desire; obstructed.

Pursuit

The act of following or chasing something with the goal of catching or achieving it.

Approach-Avoidance Conflict

A psychological struggle where a single goal or option has both appealing and repelling aspects, causing conflict.