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If Charlie's Utility Function Were X4AXB and If Apples Cost

Question 39

Multiple Choice

If Charlie's utility function were X4AXB and if apples cost 30 cents each and bananas cost 10 cents each, Charlie's budget line would be tangent to one of his indifference curves whenever


A) 4XB = 3XA.
B) XB = XA.
C) XA = 4XB.
D) XB = 4XA.
E) 30XA + 10XB = M.

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