Please refer to the following information to answer the question (in bold) below: You enjoy consuming apples (A) and oranges (O). Suppose that your utility function over both goods is given by U(A,O)=AO3. Your marginal utility function for apples is MUA=O3. Your marginal utility function for oranges is MUO=3AO2. Currently, the price of apples is $10/peck, the price of oranges is $5/pound, and your income is $160. Assume that apples are your horizontal axis good and oranges are your vertical axis good. If graphed, what is the vertical intercept of your budget constraint? ["", "", "", ""] For each peck of apples you forgo purchasing, how many additional pounds of oranges can you buy?
Please refer to the following information to answer the question (in bold) below:
You enjoy consuming apples (A) and oranges (O). Suppose that your utility function over both goods is given by U(A,O)=AO3. Your
If graphed, what is the vertical intercept of your budget constraint? ["", "", "", ""]
For each peck of apples you forgo purchasing, how many additional pounds of oranges can you buy?
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