Can you quickly give workings of the following question please? Bob views apples and oranges as perfect substitutes in his consumption, and MRS = 1 for allcombinations of the two goods in his indifference map. Suppose the price of apples is $4 perpound, the price of oranges is $3 per pound, and Bobʹs budget is $30 per week. What is Bobʹsutility maximizing choice between these two goods? A. 4 pounds of apples and 6pounds of oranges B. 5 pounds of apples and 5pounds of oranges C. no apples and 10 pounds oforanges D. 15 pounds of apples and nooranges
Can you quickly give workings of the following question please? Bob views apples and oranges as perfect substitutes in his consumption, and MRS = 1 for allcombinations of the two goods in his indifference map. Suppose the price of apples is $4 perpound, the price of oranges is $3 per pound, and Bobʹs budget is $30 per week. What is Bobʹsutility maximizing choice between these two goods? A. 4 pounds of apples and 6pounds of oranges B. 5 pounds of apples and 5pounds of oranges C. no apples and 10 pounds oforanges D. 15 pounds of apples and nooranges
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Can you quickly give workings of the following question please?
Bob views apples and oranges as perfect substitutes in his consumption, and MRS = 1 for allcombinations of the two goods in his indifference map. Suppose the price of apples is $4 perpound, the price of oranges is $3 per pound, and Bobʹs budget is $30 per week. What is Bobʹsutility maximizing choice between these two goods?
A.
4 pounds of apples and 6pounds of oranges
B.
5 pounds of apples and 5pounds of oranges
C.
no apples and 10 pounds oforanges
D.
15 pounds of apples and nooranges
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