Question
Amira both apples A and oranges O, and always gets the same additional satisfaction from one apple as she does from half orange. a) What
Amira both apples A and oranges O, and always gets the same additional satisfaction from one apple as she does from half orange.
a) What is Amira's preference and utility function.
b) Plot her preference's indifference map
c) Plot the price-offer curve of this preference and explain it.
d) If the price of an apple is LE4, the price of an orange is LE2 and her income is LE40. What is Amira's optimal choice of apples and oranges?
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Using Econometrics A Practical Guide
Authors: A. H. Studenmund
7th edition
013418274X, 978-0134182742
