#54 Assume that a consumer has a given budget or income of $12 and that she can buy only two goods, apples or bananas. Theprice of an apple is $2.00 and the price of a banana is $1.00. If the consumer decides to buy 3 apples, how many bananas canshe also buy with the remainder of her budget, assuming she exhausts her income?Multiple Choice6 bananas8 bananas12 bananas10 bananas54 of 60 HHNext

Answered: Assume that a consumer has a given…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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#54

Assume that a consumer has a given budget or income of $12 and that she can buy only two goods, apples or bananas. The
price of an apple is $2.00 and the price of a banana is $1.00. If the consumer decides to buy 3 apples, how many bananas can
she also buy with the remainder of her budget, assuming she exhausts her income?
Multiple Choice
6 bananas
8 bananas
12 bananas
10 bananas
54 of 60 HH
Next

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Step 1: Introduction to budget line

A budget line, also known as a budget constraint, is a graphical representation of the different combinations of two goods or services that a consumer can purchase given a fixed budget and the prices of the goods

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