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
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter6: Consumer Choice And Demand
Section: Chapter Questions
Problem 12PAE
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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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