Question
Suppose Shuri's utility function for apples (a) and bananas (b) is U(a,b) = 4a + 2b. Assume that the price of apples is 10, the
Suppose Shuri's utility function for apples (a) and bananas (b) is U(a,b) = 4a + 2b. Assume that the price of apples is 10, the price of bananas is 15, and her income is 60. Place apples on the x-axis. Looking at Shuri's utility function only, she has a general preference for ___________. Assuming she spends all her money, her utility from consuming only apples is __________. Assuming she spends all her money, her utility from consuming only bananas is __________. Her marginal rate of substitution (MRS) is __________. The marginal rate of transformation (MRT) is __________. Shuri's optimal consumption bundle includes __________ apples and __________ bananas. The equation for the indifference curve that intersects the optimal bundle is __________.
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