Question

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 spent all of her budget on just apples or just bananas, how many apples or bananas maximum would she be able to buy

Answer 1

Step-by-step explanation:

The woman's income = $ 12

she can buy an apple for $ 1.50

she can also buy a banana for $ 0.75

maximum number of apples the consumer can buy = $ 12 / $1.50 = 8 apples or

maximum number of bananas the consumer can buy = $ 12 / 0.75 = 16 bananas