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Title: Bob views apples and oranges as perfect substitutes in his consumption, and MRS = 1 for all ... Post by: nakungth on Oct 24, 2017 Bob views apples and oranges as perfect substitutes in his consumption, and MRS = 1 for all combinations of the two goods in his indifference map. Suppose the price of apples is $2 per pound, the price of oranges is $3 per pound, and Bob's budget is $30 per week. What is Bob's utility maximizing choice between these two goods?
A) 4 pounds of apples and 6 pounds of oranges B) 5 pounds of apples and 5 pounds of oranges C) 10 pounds of oranges and no apples D) 15 pounds of apples and no oranges E) none of the above Title: Re: Bob views apples and oranges as perfect substitutes in his consumption, and MRS = 1 for all ... Post by: LBCea on Oct 24, 2017 D
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