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How would I best answer and explain these 2 questions? Directions: Sasha is a utility-maximizing consumer who spends all of her income on peanuts and
How would I best answer and explain these 2 questions?
Directions: Sasha is a utility-maximizing consumer who spends all of her income on peanuts and bananas, both of which are normal goods. 1. Assume that the last unit of peanuts consumed increased Sashes total utility from 40 utils to 48 utils and that the last unit of bananas consumed increased her total utility from 52 utils to 56 utils. a. If the price of a unit of peanuts is $1 and Sasha is maximizing utility, calculate the price of a unit of bananas. b. If the price of a unit of peanuts increases and the price of a unit of bananas remains unchanged from the price you determined in part {a)(i), how will Sasha's purchase of peanuts changeStep by Step Solution
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