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) 0.83m/p A .B) m/(2p A ) .C) 0.20p A m.D) m/(p A + p B ) .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) 0.83m/p A .B) m/(2p A ) .C) 0.20p A m.D) m/(p A  + p B ) .E) 1.20p B m/p A .

Vanessa Reason · Accepted Answer

Final Answer : A, Explanation :  The correct answer is A 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 A 4 X B , and the price of apples is p A . Therefore, the demand for apples is equal to 5X A 4 X B /p A . Substituting X A  = 0.83m/p A , we get the demand for apples is equal to 0.83m/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) 0.83m/p_A.
B) m/(2p_A) .
C) 0.20p_Am.
D) m/(p_A + p_B) .
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) 0.83m/pA.B) m/(2pA) .C) 0.20pAm.D) m/(pA + pB) .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) 0.83m/p_A.
B) m/(2p_A) .
C) 0.20p_Am.
D) m/(p_A + p_B) .
E) 1.20p_Bm/p_A.