Can you give clear workings of the following question please? Bob views apples and oranges as perfect substitutes in his consumption, and MRS = 1 for all combinations of the two goods in his indifference map. Suppose the price of apples is $4 per pound, the price of oranges is $3 per pound, and Bobʹs budget is $30 per week. What is Bobʹs utility maximizing choice between these two goods?   A. 4 pounds of apples and 6 pounds of oranges   B. 5 pounds of apples and 5 pounds of oranges   C. no apples and 10 pounds of oranges   D. 15 pounds of apples and no oranges

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 19SQ
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Can you give clear workings of the following question please?

Bob views apples and oranges as perfect substitutes in his consumption, and MRS = 1 for all combinations of the two goods in his indifference map. Suppose the price of apples is $4 per pound, the price of oranges is $3 per pound, and Bobʹs budget is $30 per week. What is Bobʹs utility maximizing choice between these two goods?

  A.

4 pounds of apples and 6 pounds of oranges

  B.

5 pounds of apples and 5 pounds of oranges

  C.

no apples and 10 pounds of oranges

  D.

15 pounds of apples and no oranges

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