The Chuzzlewits have an income of $m per week.Let x be food and let y be all other goods.Let p_x be the price of food and p_y be the price of other goods.They can use food stamps to buy food at a price of p_x(1 - s)for up to x* units of food per week.If they buy more food than x*, they have to pay the full price p_x for additional units.Their weekly income is greater than p_x(1 - s)x*.The maximum amount of food that they can buy per week is A)x* + (m/p_x). B)(m + x*)/p_x. C)(m/p_x)+ sx*. D)m/(1 - s)p_x. E)(m + p_x)/(1 - s)p_x.

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Quizplus · Accepted Answer

The Chuzzlewits can buy x* units of food at the discounted price and then use the remaining income to buy additional food at the full price. The maximum amount of food they can buy is x* at the discounted price plus the amount they can buy with the remaining income, which is (m - p_x(1 - s)x*)/p_x. Simplifying this gives (m/p_x) + sx*.

The Chuzzlewits Have an Income of $M Per Week