Assume that a consumer has a given budget or income of $12 and that she can buy only two goods, apples or bananas. The price of an apple is $1.50 and the price of a banana is $0.75. If the consumer decides to buy 4 apples, how many bananas can she also buy with the remainder of her budget, assuming she exhausts her income?
A)8 bananas
B)4 bananas
C)6 bananas
D)10 bananas

Question

Quizplus · Accepted Answer

After purchasing 4 apples at $1.50 each, the consumer spends $6, leaving $6. At $0.75 per banana, she can buy 8 bananas with the remaining budget.

Assume That a Consumer Has a Given Budget or Income