Assume That a Consumer Has a Given Budget or Income

question 202

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. Refer to the information given above. If the consumer spent all of her budget on just apples or just bananas, how many apples or bananas maximum would she be able to buy?

• A) 12 apples or 8 bananas
• B) 8 apples or 12 bananas
• C) 16 apples or 12 bananas
• D) 8 apples or 16 bananas

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