(Figure: Prune Juice and Apple Juice I) Refer to Figure 5.8, depicting the consumer's indifference curves and budget constraints. Suppose the consumer has $20 of income to spend on apple juice and prune juice. Which of the following statement(s) is (are) TRUE? I. At $2 per quart, the consumer buys 3 quarts of apple juice.
II) At $4 per quart, the consumer buys 3 quarts of apple juice.
III) At $1.33 per quart, the consumer buys 6 quarts of apple juice.
IV) At $0.75 per quart, the consumer buys 6 quarts of apple juice.

Question

(Figure: Prune Juice and Apple Juice I) Refer to Figure 5.8, depicting the consumer's indifference curves and budget constraints. Suppose the consumer has $20 of income to spend on apple juice and prune juice. Which of the following statement(s) is (are) TRUE?  I. At $2 per quart, the consumer buys 3 quarts of apple juice.
II) At $4 per quart, the consumer buys 3 quarts of apple juice.
III) At $1.33 per quart, the consumer buys 6 quarts of apple juice.
IV) At $0.75 per quart, the consumer buys 6 quarts of apple juice.

Quizplus · Accepted Answer

The Answer of (Figure: Prune Juice and Apple Juice I) Refer to Figure 5.8, depicting the consumer's indifference curves and budget constraints. Suppose the consumer has $20 of income to spend on apple juice and prune juice. Which of the following statement(s) is (are) TRUE?  I. At $2 per quart, the consumer buys 3 quarts of apple juice.
II) At $4 per quart, the consumer buys 3 quarts of apple juice.
III) At $1.33 per quart, the consumer buys 6 quarts of apple juice.
IV) At $0.75 per quart, the consumer buys 6 quarts of apple juice.