Assume That a Consumer Has a Given Budget or Income

question 103

Multiple Choice

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