Assume That a Consumer Has a Given Budget or Income

question 9

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. This means that, in order to buy two bananas, this consumer must forgo

• A)1 apple.
• B)1.5 apples.
• C)0.5 apples.
• D)0.75 apples.

---

Definitions:

Sensory Experiences

Perceptions or interactions with the environment through the senses, such as sight, hearing, smell, taste, and touch.

Traumatic Experiences

Events or situations that cause psychological trauma due to their intense stress and the feeling of being overwhelmed.

Children

Individuals in the early stages of human development, typically considered to be from birth to adolescence.

Confabulation

The production of fabricated, distorted, or misinterpreted memories about oneself or the world, without the conscious intention to deceive.