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Mary Granola Consumes Apples and Uglifruits

Question 28

Multiple Choice

Mary Granola consumes apples and uglifruits.Mary's indifference curves are kinky.When she is consuming more apples than uglifruits, she is just willing to trade 3 apples for 1 uglifruit.When she is consuming more uglifruits than apples, she is just willing to trade 4 uglifruits for 1 apple.Let P1 be the price of uglifruits and P2 the price of apples.Mary maximizes her utility subject to her budget constraint.(Hint: Sketch one of her indifference curves.)


A) When P1 >3P2, she must consume only apples.
B) When P1 > P2, she must consume 3 times as many apples as uglifruits.
C) When 4P1 >P2, she must consume only uglifruits.
D) When P1 >P2, she must consume only apples.
E) She must consume equal numbers of both.

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