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Alex lives in Moscow, where tomatoes sell for $2 a kilo, oranges sell for $1 a kilo and mango sell for $3 a kilo. He
Alex lives in Moscow, where tomatoes sell for $2 a kilo, oranges sell for $1 a kilo and mango sell for $3 a kilo. He earns $15 per day. Kate lives in Novosibirsk, where tomatoes sell for $3 a kilo, oranges sell for $6 a kilo and mango sell for $5. She earns $55 a day. Consider two alternative situations: (i) Alex consumes 4 kilos of tomatoes, 4 kilos of oranges and 1 kilo of mango; Kate consumes 6 kilos of tomatoes, 2 kilos of oranges and 5 kilos of mango. (ii) Alex consumes 4 kilos of tomatoes, 4 kilos of oranges and 1 kilo of mango, Kate consumes 1 kilo of tomatoes, 7 kilos of oranges and 2 kilos of mango. Can you determine whether in either of these situations Alex and Kate have different tastes? Explain. MARKING: Affordability of Kate's bundle for Alex and conclusion on comparison of and for Alex. (0.5 p.) ~x K for Alex. (0.5 p.) ~x K Overall conclusion about the hypothesis (0.5 p.). Case (ii) Affordability of Kate's bundle for Alex and conclusion on comparison of and ~x A Overall conclusion about the hypothesis (0.5 p.)
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