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. Oscarconsumesoranges 0) and bananas His utdity . The price of orangesis SI while the price of banmas is S2. Oscar' s income is
. Oscarconsumesoranges 0) and bananas His utdity . The price of orangesis SI while the price of banmas is S2. Oscar' s income is per day. The pice of oranges suddenly increases to . 2.1. Before the price change how maty oranges md bananas did Oscar conme? (2 marks) 22. Suppose that after theprice change, Oscar's incom e had changed so that he could exactly afford his 01 d conLmption would Oscar' s incom e be? With this itrom e and the new prices, how many oranges and bmanas d Oscar consum e? (2 marks) 2.3. After the price change, how mmy oranges md bananas does Oscar consume? (2 marks) 2.4. Does the subsfitufion effect of the increase in the price of ormges make Oscar buy more oranges or fewer oranges? How many more or fewer oranges? (2 marks) 2.5 . Does the incom e effect make Oscar consum e more oranges or fewer? How many more oranges or fewer? (2 marks) 2.6. Does the subsfitufion effect of the increase in the price of ormgesmake Oscar congame more bananas or fewer? How mmy more bananas or fewer? Does the itrom e effect of the increase in the price of ormges make Oscar congam e more bmanas fewer? How many more or fewer banma s? (2 marks) 2.7. Show the subsfitufionandincome effects graphcally. (2 marks)
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