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Apples Oranges
Units Total Utility Units Total Utility
0 0 0 0
1 15 1 22
2 28 2 41
3 39 3 58
4 48 4 73
5 55 5 85
Assume that the price of oranges increases to $2, while the price of apples remains at $1, and Linda allocates $5 of the weekly food budget to purchasing apples and oranges. If Linda wants to maximize her utility, her new consumption bundle will consist of:
a. 1 apple and 2 oranges.
b. 3 apples and 1 orange.
c. 5 apples and no oranges.
d. none of the above
Answers: 2
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Apples Oranges
Units Total Utility Units Total Utility
0 0 0 0
1 15 1 22
2 28 2...
0 0 0 0
1 15 1 22
2 28 2...
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