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Assume that a consumer has $12 in income and she can buy only two goods, apples or bananas. The price of an apple is $1.50 and the price of a banana is $0.75. If the consumer spent all of her money on either apples or bananas, how many apples or how many bananas would she be able to buy

Respuesta :

jepessoa

Answer:

she can buy 8 apples or 12 bananas

Explanation:

The total amount of apples that can be purchased with $12 is 8 (= $12 / $1.50), while the total number of bananas is 16 (= $12 / $0.75). This is known as the consumer possibilities frontier.

Her consumer possibilities frontier is shown by the attached graph, and she should be able to purchase any combination given by the line.

Ver imagen jepessoa

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