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
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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