1. Betty consumes two goods, apples and bananas, and is maximizing her utility. Explain with a graph (budget line and indifference curves) and words how her utility-maximizing choice will change if the price of apples falls. According to how you drew your graph, are the two goods complements or substitutes?

1. Betty consumes two goods, apples and bananas, and is maximizing her utility. Explain with a graph (budget line and indifference curves) and words how her utility-maximizing choice will change if the price of apples falls. According to how you drew your graph, are the two goods complements or substitutes?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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