Penny likes to have peanut butter (B) with apples (A). The price of apples is $3 per pound and peanut butter costs $.50 per ounce. Penny's budget for peanut butter and apples is $3.60. Penny's utility function is U (A, B) = A/B. Penny's MRS is [ Select ] His income expansion path is described by [ [ Select ] . Thus, Penny will consume [Select ] ounces of peanut butter and [ Select ] pounds of apples.
Penny likes to have peanut butter (B) with apples (A). The price of apples is $3 per pound and peanut butter costs $.50 per ounce. Penny's budget for peanut butter and apples is $3.60. Penny's utility function is U (A, B) = A/B. Penny's MRS is [ Select ] His income expansion path is described by [ [ Select ] . Thus, Penny will consume [Select ] ounces of peanut butter and [ Select ] pounds of apples.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 23SQ
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![Penny likes to have peanut butter (B) with apples (A). The price of apples is $3 per pound and peanut
butter costs $.50 per ounce. Penny's budget for peanut butter and apples is $3.60. Penny's utility
function is U (A, B) = A/B.
Penny's MRS is [ Select ]
His income expansion path is described by
[
[ Select ]
. Thus, Penny will consume [Select ]
ounces
of peanut butter and
[ Select ]
pounds of apples.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4af65f2b-5a26-424b-9109-ee7a42f60fe3%2F2472bb8b-fbee-4384-b457-110cd4c43bf8%2Fvlzkdm8_processed.png&w=3840&q=75)
Transcribed Image Text:Penny likes to have peanut butter (B) with apples (A). The price of apples is $3 per pound and peanut
butter costs $.50 per ounce. Penny's budget for peanut butter and apples is $3.60. Penny's utility
function is U (A, B) = A/B.
Penny's MRS is [ Select ]
His income expansion path is described by
[
[ Select ]
. Thus, Penny will consume [Select ]
ounces
of peanut butter and
[ Select ]
pounds of apples.
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