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Charlie’s utility function is xAxB. The price of apples used to be $1, the price of...

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 $5 and the price of bananas stayed constant, the substitution effect on Charlie’s apple consumption would reduce his consumption by

  1. 4 apples.

  2. 13 apples.

  3. 8 apples.

  4. 16 apples.

  5. None of the above.

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