Madeline lives in Melbourne, where she buys kiwis at $10 per box and bananas at $9 per a bunch. With her income of $182 she buys 11 boxes of kiwis and 8 bunches of bananas. Hugo, who lives in Sydney, with an income of $175, consumes kiwis at a cost of $7 per box and bananas at a cost of $12 per bunch. Assuming their preferences are identical, O Madeline would prefer Hugo's consumption bundle to her own. O Hugo would prefer Madeline's consumption bundle to his own. O They would both be indifferent between their own bundles and the other's. O Each prefers his/her own bundle to that of the other. O We can't make any of the above statements without more information.
Madeline lives in Melbourne, where she buys kiwis at $10 per box and bananas at $9 per a bunch. With her income of $182 she buys 11 boxes of kiwis and 8 bunches of bananas. Hugo, who lives in Sydney, with an income of $175, consumes kiwis at a cost of $7 per box and bananas at a cost of $12 per bunch. Assuming their preferences are identical, O Madeline would prefer Hugo's consumption bundle to her own. O Hugo would prefer Madeline's consumption bundle to his own. O They would both be indifferent between their own bundles and the other's. O Each prefers his/her own bundle to that of the other. O We can't make any of the above statements without more information.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Question 10
Madeline lives in Melbourne, where she buys kiwis at $10 per box and bananas at $9 per a bunch.
With her income of $182 she buys 11 boxes of kiwis and 8 bunches of bananas. Hugo, who lives in
Sydney, with an income of $175, consumes kiwis at a cost of $7 per box and bananas at a cost of
$12 per bunch. Assuming their preferences are identical,
O Madeline would prefer Hugo's consumption bundle to her own.
O Hugo would prefer Madeline's consumption bundle to his own.
O They would both be indifferent between their own bundles and the other's.
O Each prefers his/her own bundle to that of the other.
O We can't make any of the above statements without more information.
Question 11
Ivy was maximizing her utility subject to her budget constraint. Then prices changed. After the
change, she is better off. Therefore, the new bundle costs more at the old prices than the old bundle
did.
O True
False
Ouestion 12
1 pts
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