1 in problem 1 if charlies utility function were x5axb if

Reference no: EM13376070

1. In Problem 1, if Charlie's utility function were X⁵_AX_B, if apples cost 70 cents each, and if bananas cost 10 cents each, Charlie's budget line would be tangent to one of his indifference curves whenever

a.	5X_B = 7X_A.
b.	X_B = X_A.
c.	X_A = 5X_B.
d.	X_B = 5X_A.
e.	70X_A + 10X_B = M.

2. In Problem 1, if Charlie's utility function were X²_AX_B, the price of apples were p_A, the price of bananas were p_B, and his income were m, then Charlie's demand for apples would be

3. Ambrose's brother Anthony has an income of $75 and a utility function U(x₁, x₂) 20x^1/2 + x₂. The price of good 1 (nuts) is $2 and the price of good 2 (berries) is $1. How many units of nuts will Anthony demand?

a.	35
b.	21
c.	23
d.	25
e.	48

4. Ambrose's brother Augustine has an income of $52 and a utility function U(x₁, x₂) 18x^1/2 + x₂. The price of good 1(nuts) is $3 and the price of good 2(berries) is $1. How many units of berries will Augustine demand?

a.	25
b.	9
c.	50
d.	15
e.	There is not enough information to determine the answer.

5. In Problem, recall that Miss Muffett insists on consuming 2 units of whey per unit of curds. If the price of curds is $5 and the price of whey is $6, then if Miss Muffett's income is m, her demand for curds will be

6. In Problem recall that Casper's utility function is 3x + y, where x is his consumption of cocoa and y is his consumption of cheese. If the total cost of x units of cocoa is x², the price of cheese is $8, and Casper's income is $184, how many units of cocoa will he consume?

a.	9
b.	12
c.	23
d.	11
e.	24

Reference no: EM13376070

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