Andy purchases only two goods, apples (a) and kumquats (k). He has an income of $80 and can buy apples at $1 per pound and kumquats at $2 per pound. His utility function is U(a, k) = 3a + 5k. That is, his constant marginal utility for apples is 3 and his constant marginal utility for kumquats is 5. What bundle of apples and kumquats should Andy purchase to maximize his utility? Why? Andy should maximize his utility buy purchasing number.) apples (Ibs.) and kumquats (Ibs.). (Enter your responses rounded to the nearest whole

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
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Andy purchases only two goods, apples (a) and kumquats (k). He has an income of $80 and can buy apples at $1 per pound and kumquats at $2 per
pound. His utility function is
U(a, k) = 3a + 5k.
That is, his constant marginal utility for apples is 3 and his constant marginal utility for kumquats is 5. What bundle of apples and kumquats should
Andy purchase to maximize his utility? Why?
Andy should maximize his utility buy purchasing
number.)
apples (Ibs.) and
kumquats (Ibs.). (Enter your responses rounded to the nearest whole
Transcribed Image Text:Andy purchases only two goods, apples (a) and kumquats (k). He has an income of $80 and can buy apples at $1 per pound and kumquats at $2 per pound. His utility function is U(a, k) = 3a + 5k. That is, his constant marginal utility for apples is 3 and his constant marginal utility for kumquats is 5. What bundle of apples and kumquats should Andy purchase to maximize his utility? Why? Andy should maximize his utility buy purchasing number.) apples (Ibs.) and kumquats (Ibs.). (Enter your responses rounded to the nearest whole
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