Ben gets utility from apples and bananas such that U(A,B)=A+2B. If the price of bananas is $2, then Ben's ordinary demand curve for apples in the (x1, p1) plane is zero for pA>$2 and then downward sloping for pA<$2 zero for pA>$0.50 and then downward sloping for pA<$0.50 zero for pA>$0.50 and then vertical for pA<$0.50 zero for pA>$1 and then vertical for pA<$1 downward sloping for all prices

Ben gets utility from apples and bananas such that U(A,B)=A+2B. If the price of bananas is $2, then Ben's ordinary demand curve for apples in the (x1, p1) plane is zero for pA>$2 and then downward sloping for pA<$2 zero for pA>$0.50 and then downward sloping for pA<$0.50 zero for pA>$0.50 and then vertical for pA<$0.50 zero for pA>$1 and then vertical for pA<$1 downward sloping for all prices

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter20: Consumer Choice: Maximizing Utility And Behavioral Economics

Section: Chapter Questions

Problem 6QP

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