Quincy consumes only uglifruits and bananas.His only source of income is an initial endowment of 30 units of uglifruits and 10 units of bananas.Quincy insists on consuming uglifruits and bananas in fixed proportions, 1 unit of uglifruits per 1 unit of bananas.He initially faces a price of $20 per unit for each fruit.The price of uglifruits rose to $40 per unit while the price of bananas stayed unchanged.After the price change, he would
A) increase his consumption of uglifruits by exactly 3.33 units.
B) decrease his consumption or uglifruits by at least 3.33 units.
C) decrease his consumption of uglifruits by exactly 5.33 units.
D) increase his consumption of uglifruits by exactly 13.33 units.
E) decrease his consumption of bananas by at least 1 unit.
Correct Answer:
Verified
Q38: Donald consumes goods x and y.His utility
Q39: Donald consumes goods x and y.His utility
Q40: Holly consumes x and y.The price of
Q41: If Abishag owns 16 quinces and 15
Q42: Henri is paid $9 an hour for
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)=
Q48: Albert consumes only tangerines and bananas.His only
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