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Sharon likes apples (A) and bananas (B) and has utility function U(A,B) = AB. The price of an apple is 2, the price of a
Sharon likes apples (A) and bananas (B) and has utility function U(A,B) = AB. The price of an apple is 2, the price of a banana is 1 and Sharon's monthly income/budget is 40. (a) With Apples on the horizontal axis, draw Sharon's budget line and explain its slope. (b) How many apples and bananas will Sharon consume to maximize her monthly utility? (c) What is the minimum income required for Sharon to afford a bundle that gives her U = 288?
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