How many apples are relinquished, Business Economics

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How many apples are relinquished

Economic Theory on Utility

1- Suppose a person has $8 to spend only on apples and bananas. Apples cost $.40 each, and bananas cost $.10 each.

a- If this person buys only apples, how many can be bought?

b- If this person buys only bananas, how many can be bought?

c- If the person were to buy 10 apples, how many bananas could be bought with the funds left over?

d- If the person consumes one less apple (that is, nine) how many more bananas could be bought? Is this rate of trade-off the same no matter how many apples are relinquished?

e- Write down the algebraic equation for this person's budget constraint, and graph it showing the points mentioned in parts a through d

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Business Economics: How many apples are relinquished

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Business Economics: How many apples are relinquished

Reference No:- TGS027969

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