Asked by Karla Reyes on Jun 30, 2024
Verified
Assume that a consumer has a given budget or income of $12 and that 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 decides to buy 4 apples, how many bananas can she also buy with the remainder of her budget, assuming she exhausts her income?
A) 8 bananas
B) 4 bananas
C) 6 bananas
D) 10 bananas
Budget
An estimate of income and expenditure for a set period of time.
Exhausts
Refers to resources or supplies being completely used up or depleted.
Bananas
A tropical fruit with a yellow skin and soft, sweet flesh, often grown in clusters on large plants resembling trees.
- Acquire knowledge on the subject of budget constraints and the idea of opportunity cost.
Verified Answer
ER
Eddie Ray RoncoJul 01, 2024
Final Answer :
A
Explanation :
After purchasing 4 apples at $1.50 each, the consumer spends $6, leaving $6. At $0.75 per banana, she can buy 8 bananas with the remaining budget.
Learning Objectives
- Acquire knowledge on the subject of budget constraints and the idea of opportunity cost.