Question: Charu loves apples and hates bananas. Her utility function is U(a; b) = a (1/4) b^2 where a is the number of apples she consumes

Charu loves apples and hates bananas.

Her utility function is U(a; b) = a (1/4) b^2

where a is the number of apples she consumes and b is the number of bananas she consumes. Sandeep likes both apples and bananas.

His utility function is U(a; b) = a + 2 b

Charu has an initial endowment of no apples and 8 bananas. Sandeep has an initial endowment of 16 apples and 8 bananas. If apples is the numeraire commodity (i.e., its price is normalized to 1), then the only price of bananas at which Sandeep will want to consume exactly 16 bananas is?

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