Albert consumes only tangerines and bananas.His only source of income is an initial endowment of 30 units of tangerines and 10 units of bananas.Albert insists on consuming tangerines and bananas in fixed proportions, 1 unit of tangerines per 1 unit of bananas.He initially faces a price of $10 per unit for each fruit.The price of tangerines rose to $30 per unit while the price of bananas stayed unchanged.After the price change, he would
A) increase his consumption of tangerines by exactly 5 units.
B) decrease his consumption or tangerines by at least 5 units.
C) increase his consumption of tangerines by exactly 15 units.
D) decrease his consumption of tangerines by exactly 7 units.
E) decrease his consumption of bananas by at least 1 unit.
Correct Answer:
Verified
Q43: Quincy consumes only uglifruits and bananas.His only
Q44: Gladys Goodhands is an insurance agent.She must
Q45: Mario consumes eggplants and tomatoes in the
Q46: Mario consumes eggplants and tomatoes in the
Q47: Dudley has a utility function U(C, R)=
Q49: If Abishag owns 18 quinces and 5
Q50: Mr.Cog has 18 hours per day to
Q51: Dr.Johnson receives a lump sum payment of
Q52: There are no taxes on the first
Q53: Mr.Cog has 18 hours per day to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents