Waldo buys only two items, pretzels and ham sandwiches. Waldo has $24 in income, pretzels cost $0.60 per bag and ham sandwiches cost $2.40 each. Which of the following statements is TRUE for the information given above?All of the above answers are correct. Waldo's real income expressed in terms of ham sandwiches is 10 ham sandwiches. The relative price of a ham sandwich in terms of pretzels is 4 bags of pretzels per ham sandwich. Waldo's real income expressed in terms of pretzels is 40 bags of pretzels.

In the question, it is given that the income of Waldo is $24. Cost of pretzels is $0.60 per bag.…

Answered: Waldo buys only two items, pretzels and…

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 11SQ

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Waldo buys only two items, pretzels and ham sandwiches. Waldo has $24 in income, pretzels cost $0.60 per bag and ham sandwiches cost $2.40 each. Which of the following statements is TRUE for the information given above?

All of the above answers are correct.
	Waldo's real income expressed in terms of ham sandwiches is 10 ham sandwiches.
	The relative price of a ham sandwich in terms of pretzels is 4 bags of pretzels per ham sandwich.
	Waldo's real income expressed in terms of pretzels is 40 bags of pretzels.

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