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Andy purchases only two goods, apples (a) and kumquats (k). He has an income of $120 and can buy apples at $1 per pound and
Andy purchases only two goods, apples (a) and kumquats (k). He has an income of $120 and can buy apples at
$1 per pound and kumquats at $2 per pound.
His utility function isU(a,k)=3a+5k.
That is, his constant marginal utility for apples is 3 and his constant marginal utility for kumquats is 5.
What bundle of apples and kumquats should Andy purchase to maximize his utility? Why?
Andy should maximize his utility buy purchasing ____ apples (lbs.) and ___ kumquats (lbs.). (Enter your responses rounded to the nearest whole number.)
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