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2 2. Charlie's utility function for apples (z) and bananas (FB) is u (TA, TB) = CATB (a) Derive an expression for the indifference curve
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2. Charlie's utility function for apples (z) and bananas (FB) is u (TA, TB) = CATB (a) Derive an expression for the indifference curve through the consumption bundle with 40 apples and 5 bananas. (b) Donna offers to give Charlie 15 bananas if he will give her 25 apples. Would Charlie have a bundle that he prefers to (40, 5) if he makes this trade? (c) What is the largest number of apples that Donna could demand from Charlie in return for 15 bananas if she expects him to be willing to trade or at least be indifferent about tradingStep by Step Solution
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