Business
Business, 02.03.2020 23:31, sarabell7626

Charlie’s utility function is (x, x) = xx. 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 (choose the closest answer) (a) 4 apples (b) 13 apples

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Charlie’s utility function is (x, x) = xx. The price of apples used to be $1, the price of bananas u...

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