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​ $2 per​ pound, the price of oranges is​ $3 per​ pound, and​ Bob's budget is​ $30 per week. What is​ Bob's utility-maximizing choice between these two​ goods?

Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter6: Consumer Choice And Demand
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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​ $2 per​ pound, the price of oranges is​ $3 per​ pound, and​ Bob's budget is​ $30 per week. What is​ Bob's utility-maximizing choice between these two​ goods?

 

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