Charlie has the utility function U(x A , x B ) = x A x B .His indifference curve passing through 32 apples and 8 bananas will also pass through the point where he consumes 4 apples andA) 16 bananas.B) 32 bananas.C) 68 bananas.D) 72 bananas.E) 64 bananas.

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Axell Hernandez · Accepted Answer

Final Answer : E, Explanation :  Charlie's utility function is U(x_A, x_B) = x_A * x_B. At the point (32 apples, 8 bananas), his utility is 32 * 8 = 256. For the indifference curve to pass through (4 apples, x bananas), the utility must remain 256. Solving 4 * x = 256 gives x = 64 bananas.

Charlie has the utility function U(x_A, x_B) = x_Ax_B.His indifference curve passing through 32 apples and 8 bananas will also pass through the point where he consumes 4 apples and

A) 16 bananas.
B) 32 bananas.
C) 68 bananas.
D) 72 bananas.
E) 64 bananas.

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Learning Objectives

Related questions

Charlie has the utility function U(xA, xB) = xAxB.His indifference curve passing through 32 apples and 8 bananas will also pass through the point where he consumes 4 apples andA) 16 bananas.B) 32 bananas.C) 68 bananas.D) 72 bananas.E) 64 bananas.

Definitions

Learning Objectives

Learning Objectives

Related questions

Charlie has the utility function U(x_A, x_B) = x_Ax_B.His indifference curve passing through 32 apples and 8 bananas will also pass through the point where he consumes 4 apples and

A) 16 bananas.
B) 32 bananas.
C) 68 bananas.
D) 72 bananas.
E) 64 bananas.