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Solve clearly...don't copy from internet Apples. kg 15 Bananas, kg The graph presents the quantities of bananas and apples which Sam consumes. Sam has a
Solve clearly...don't copy from internet
Apples. kg 15 Bananas, kg The graph presents the quantities of bananas and apples which Sam consumes. Sam has a total budget of $ 45 which he spends on fruits monthly. Given the information provided by the graph, 1. Find the prices of the two fruits. What is the slope of Sam's budget line? 2. If the marginal utility of bananas is M Ub=2, then what is the marginal utlity of apples MUa? 3. If Sam eats 3 kg of apples per month, how many kilograms of bananas is he eating at the maximum? 4. If the price of bananas doubles, what is the slope of his new budget line? How many bananas does he eat when he still consumes 3 kg of apples? What has happened to his indifference curve? Does his consumption position improve or worsenStep by Step Solution
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