Asked by Nellies Asante on May 21, 2024

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Suppose that Mario consumes eggplants and tomatoes in the ratio of 1 bushel of eggplants per 1 bushel of tomatoes.His garden yields 30 bushels of eggplants and 10 bushels of tomatoes.He initially faced prices of $10 per bushel for each vegetable, but the price of eggplants rose to $20 per bushel, while the price of tomatoes stayed unchanged.After the price change, he would

A) decrease his eggplant consumption by at least 3.33 bushels.
B) decrease his consumption of eggplants by 5.33 bushels.
C) increase his consumption of eggplants by 5.33 bushels.
D) increase his eggplant consumption by 3.33 bushels.
E) decrease his tomato consumption by at least 1 bushel.

Bushel

A unit of volume that is used mainly for agricultural products, such as grains and fruits, equivalent to approximately 36.4 liters in the United States.

Consumption

The use of goods and services by households or individuals, constituting one of the key concepts in economics.

  • Explore the repercussions of price and income adjustments on consumer stability.
  • Assess the influence of altering prices on the quantity of products demanded by employing elasticity principles.
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Daniella UghocMay 24, 2024
Final Answer :
D
Explanation :
Before the price change, Mario was consuming eggplants and tomatoes in the ratio of 1:1. Therefore, he was consuming 15 bushels of each vegetable.

After the price change, he will shift his consumption towards the cheaper vegetable. As the price of eggplants has doubled, it is now more expensive than tomatoes, and he will reduce his consumption of eggplants.

Let's assume he now consumes x bushels of eggplants and y bushels of tomatoes. As he still consumes the vegetables in the ratio of 1:1, we know that x = y.

We can set up an equation using the prices:

10(30-x) + 20x = 10(10-y) + 10y

Expanding and simplifying, we get:

300 - 10x + 20x = 100 - 10y + 10y
200 = 10x
x = 20

So after the price change, Mario will consume 20 bushels of eggplants and 20 bushels of tomatoes. This is an increase of 5.33 bushels of eggplants from his initial consumption of 15 bushels. Therefore, the answer is (D) increase his eggplant consumption by 3.33 bushels.