Aji Fatou's utility function for Blueberry (b) and Raspberry (r) is given as follows: U = f(b, r); Budget constraint: 100 = 4b + 5r. If Blueberry is graph in the horizontal axis and Raspberry on the Vertical axis. Which of the following is true? O a. If Aji Fatou spend her entire income on Blueberry, she will get 25 Blueberries. O b. If Aji Fatou spend her entire income on Raspberry, she will get 20 Raspberries. O c. The slope of her budget line is 4/5. O d. All of the above.
Aji Fatou's utility function for Blueberry (b) and Raspberry (r) is given as follows: U = f(b, r); Budget constraint: 100 = 4b + 5r. If Blueberry is graph in the horizontal axis and Raspberry on the Vertical axis. Which of the following is true? O a. If Aji Fatou spend her entire income on Blueberry, she will get 25 Blueberries. O b. If Aji Fatou spend her entire income on Raspberry, she will get 20 Raspberries. O c. The slope of her budget line is 4/5. O d. All of the above.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter20: Consumer Choice: Maximizing Utility And Behavioral Economics
Section20.1: Utility Theory
Problem 3ST
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