Solved

Mary Granola Consumes Tomatoes and Nectarines

Question 26

Multiple Choice

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.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents