if Charlie's utility function were X 5 A X 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 beA) 0.20p A m.B) m/(2p A ) .C) m/p A + p B ) .D) 0.67m/p A .E) 1.20p B m/p A .

Question

if Charlie's utility function were X  5 A  X 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 beA) 0.20p A m.B) m/(2p A ) .C) m/p A  + p B ) .D) 0.67m/p A .E) 1.20p B m/p A .

juanita gomez · Accepted Answer

Final Answer : D, Explanation :  The correct answer is D because the demand for apples is equal to the marginal utility of apples divided by the price of apples. The marginal utility of apples is equal to 5X^4_AX_B, and the price of apples is p_A. Therefore, the demand for apples is equal to 5X^4_AX_B/p_A = 0.67m/p_A.

if Charlie's utility function were X ⁵_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

A) 0.20p_Am.
B) m/(2p_A) .
C) m/p_A + p_B) .
D) 0.67m/p_A.
E) 1.20p_Bm/p_A.

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Learning Objectives

Learning Objectives

Related questions

if Charlie's utility function were X 5A XB, the price of apples were pA, the price of bananas were pB, and his income were m, then Charlie's demand for apples would beA) 0.20pAm.B) m/(2pA) .C) m/pA + pB) .D) 0.67m/pA.E) 1.20pBm/pA.

Definitions

Learning Objectives

Learning Objectives

Related questions

if Charlie's utility function were X ⁵_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

A) 0.20p_Am.
B) m/(2p_A) .
C) m/p_A + p_B) .
D) 0.67m/p_A.
E) 1.20p_Bm/p_A.