Top Posters
Since Sunday
k
1
1
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
corie corie
wrote...
Go to Answer
Posts: 767
Rep: 10 0
6 years ago
Suppose there are 10 apples and 10 oranges in the economy.  Joe is currently consuming 4 apples and 5 oranges, and Jane is consuming 6 apples and 5 oranges.  At this allocation, Joe's marginal utility of apples is 3, and his marginal utility of oranges is 5.  Jane's marginal utility of apples is 6, and her marginal utility of oranges is 10.  The current price of apples is $4 and the current price of oranges is $5.  To reach a competitive equilibrium, the required price adjustment is:
A) a decrease in the apple price relative to the orange price.
B) a decrease in the orange price relative to the apple price.
C) no change in the relative prices.
D) an increase in both prices.
Textbook 
Microeconomics

Microeconomics


Edition: 8th
Author:
Read 221 times
3 Replies
Replies
Answer verified by a subject expert
boransalboransal
wrote...
#1
Posts: 477
Rep: 13 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
This verified answer contains over 100 words.
1

Related Topics

Anonymous
wrote...
#2
9 months ago
Help! The answer is missing an explanation...
wrote...
#3
9 months ago
more details provided
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  876 People Browsing
 105 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 729
  
 96
  
 719
Your Opinion
Which 'study break' activity do you find most distracting?
Votes: 741
Previous poll results: Which industry do you think artificial intelligence (AI) will impact the most?