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 givenbyYour marginal utility function for apples is. Your marginal utility function for oranges is2 apples, 10 oranges2 apples, 11 oranges4 apples, 12 orangesU (A, O) = AO³5 apples, 13 oranges6 apples, 14 orangesMUA 0³MUO. 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.Let's say the price of oranges rises to $10/pound of oranges.Given your preferences and budget constraint, what bundle represents your new consumerequilibrium for apples and oranges?==3A0²

Utility is maximised where ratio of marginal utility of each good is equal to ratio of prices

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 Your marginal utility function for apples is Your marginal utility function for oranges is U (A,O) = AO³ 2 apples, 10 oranges 2 apples, 11 oranges 4 apples, 12 oranges 5 apples, 13 oranges 6 apples, 14 oranges MUA = 0³ MUO = 3A0² . 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. Let's say the price of oranges rises to $10/pound of oranges. Given your preferences and budget constraint, what bundle represents your new consumer equilibrium for apples and oranges?

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 Your marginal utility function for apples is Your marginal utility function for oranges is U (A,O) = AO³ 2 apples, 10 oranges 2 apples, 11 oranges 4 apples, 12 oranges 5 apples, 13 oranges 6 apples, 14 oranges MUA = 0³ MUO = 3A0² . 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. Let's say the price of oranges rises to $10/pound of oranges. Given your preferences and budget constraint, what bundle represents your new consumer equilibrium for apples and oranges?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter6: Demand Relationships Among Goods

Section: Chapter Questions

Problem 6.9P

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