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Andy purchases only twogoods, apples(a) and kumquats(k). He has an income of $80 and can buy apples at $2 per pound and kumquats at $1per
Andy purchases only twogoods, apples(a) and kumquats(k). He has an income of $80 and can buy apples at $2 per pound and kumquats at $1per pound. His utility function is
U(a, k)=5a +3k.
Thatis, his constant marginal utility for apples is 5 and his constant marginal utility for kumquats is 3. What bundle of apples and kumquats should Andy purchase to maximize hisutility? Why?
Andy should maximize his utility buy purchasing ______ apples(lbs.) and _______ kumquats(lbs.).(Enter your responses rounded to the nearest wholenumber.)
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