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Katyanochek1 [597]
3 years ago
11

Charlie’s utility function is ????(x????,x????) = x????x????. 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

Business
1 answer:
Reptile [31]3 years ago
3 0

Answer:

The other options are ; (a) 4 apples (b) 13 apples (c) 11 apples (d) None of the above

Explanation:

The detailed analysis and step by step calculation is as shown in the attached files.

The correct option is NONE OF THE ABOVE

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Answer:

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Wilcox Company has budgeted sales volume of 60,000 units and budgeted production of 54,000 units, while 10,000 units are in begi
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Answer:

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