Suppose That Mario Consumes Eggplants and Tomatoes in the Ratio

question 14

Multiple Choice

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 $25 per bushel for each vegetable, but the price of eggplants rose to $100 per bushel, while the price of tomatoes stayed unchanged.After the price change, he would

• A)increase his eggplant consumption by 6 bushels.
• B)increase his consumption of eggplants by 8 bushels.
• C)decrease his consumption of eggplants by 8 bushels.
• D)decrease his eggplant consumption by at least 6 bushels.
• E)decrease his tomato consumption by at least 1 bushel.

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Definitions:

Monthly Compounded

Refers to the process of adding interest to the principal sum of a loan or deposit, recalculated on a monthly basis. This is a repeat of Compounded Monthly with a new definition focusing on recalculating interest increase.

Compounded Monthly

Compounded monthly refers to the process where the interest earned on an investment is added to the principal sum each month, causing the principal amount to grow at an increasing rate.

Effective Rate

The actual interest rate an individual pays or earns on a loan or investment, taking into account the effects of compounding.

Compounded Semiannually

Refers to the process of calculating and adding interest to the principal balance of an investment or loan twice a year.