Question
A consumer regards apples and bananas as perfect substitutes in her consumption, andMRSAB=0.5=0.5for all combinations of the two goods in her indifference map. The price
A consumer regards apples and bananas as perfect substitutes in her consumption, andMRSAB=0.5=0.5for all combinations of the two goods in her indifference map. The price of apples is $2 per pound and the price of bananas is $3 per pound. If the consumer's budget is $60 per week, what is consumer's utility maximizing choice between the two goods?
Please select one:
a. 15 pounds of apples and 10 pounds of bananas.
b. 12 pounds of apples and 12 pounds of bananas.
c. 30 pounds of apples and no bananas.
d. 6 pounds of apples and 16 pounds of bananas.
e. None of the above.
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