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GentleCharlieconsumesonlyapplesandbananas. HisutilityfunctionisU(xA,xB)= xAxB (where xA and xB are the number of apples and bananas consumed in a day). The price of apples is $1, the
GentleCharlieconsumesonlyapplesandbananas. HisutilityfunctionisU(xA,xB)= xAxB (where xA and xB are the number of apples and bananas consumed in a day). The price of apples is $1, the price of bananas is $2, and Charlie's income is $40 a day. The price of bananas suddenly falls to $1
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