Microeconomics Consumer Theory Practice Questions:
1. "Angela view Apples and Bread as a perfect substitutes at a 1:1 ratio. Thus she will always spend half of her income on each good." Comment (True or False, why?)
2. "If apples are $1 per pound while bananas are $2 a pound. Paula should spend her last $1 on apples." Comment (True or False, why?)
3. Graphically illustrate, aided with verbal discussion, why isoquants cannot intersect.