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Charlie's utility function is xAxB. The price of apples used to be $1, the price of bananas used to be $2, and his income used
Charlie's utility function is xAxB. 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 6 and the price of bananas stayed constant, the substitution effect on Charlie's apple consumption reduces his consumption by?
answer:8.33apples
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