Question

Charlie has the utility function U(xa,xb) = xaxb, where A and B are the numbers of apples and bananas, respectively, that he consumes. His indifference curve passing through 10 apples and 30 bananas will also pass trough the point where he consumes 2 apples and

Name: charlie has the utility function uxaxb xaxb where a and b are the numbers of apples and bananas respectively that he consumes his indifference curve passing through 10 apples and 30 bananas 18916
Uploaded: 2022-08-08T01:39:38-08:00
Duration: 2 min 4 s
Channel: Azat Nurmukhametov
Description: charlie has the utility function uxaxb xaxb where a and b are the numbers of apples and bananas respectively that he consumes his indifference curve passing through 10 apples and 30 bananas 18916

          Charlie has the utility function U(xa,xb) = xaxb, where A and B are the numbers of apples and bananas, respectively, that he consumes. His indifference curve passing through 10 apples and 30 bananas will also pass trough the point where he consumes 2 apples and

Added by Mary W.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Azat Nurmukhametov

08/08/2022

Step 1

Since the utility function is U(xa, xb) = xaxb, we can set up the equation as follows: 10 * 30 = xa * xb Simplifying, we get: 300 = xa * xb Now, let's find the point where Charlie consumes 2 apples. We know that the equation of the indifference curve is Show more…

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Charlie has the utility function U(xa,xb) = xaxb, where A and B are the numbers of apples and bananas, respectively, that he consumes. His indifference curve passing through 10 apples and 30 bananas will also pass trough the point where he consumes 2 apples and