Mary Granola consumes tomatoes and nectarines.Mary's indifference curves are kinky.When she is consuming more tomatoes than nectarines, she is just willing to trade 3 tomatoes for 1 nectarine.When she is consuming more nectarines than tomatoes, she is just willing to trade 4 nectarines for 1 tomato.Let P1 be the price of nectarines, and P2 the price of tomatoes.Mary maximizes her utility subject to her budget constraint.(Hint: Sketch one of her indifference curves.)
A) When P1 >P2, she must consume only tomatoes.
B) When P1 >P2, she must consume 3 times as many tomatoes as nectarines.
C) When P1 > 3P2, she must consume only tomatoes.
D) When 4P1 >P2, she must consume only nectarines.
E) She must consume equal numbers of both.
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