Charlie has the utility function u(xa, xb) =xaxb.his indifference curve passing through 32 applesand 8 bananas will also pass through the point where he consumes 4 apples and
On an indifference curve, all bundles give the same amount of utility. (32,8) gives a utility of
U(32,8)=32x8=256
If (4,y) is on the same indifference curve, then it must give the same utility. Hence,
256 = 4y
y=64
64 bananas
