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 decides to buy 4 apples, how many bananas can she also buy with the remainder of her budget?
A) 8 bananas
B) 4 bananas
C) 6 bananas
D) 10 bananas

Question

Quizplus · Accepted Answer

The consumer spends $6 on apples (4 x $1.50 = $6). With the remaining $6, she can buy 8 bananas (6 / $0.75 = 8).

Assume That a Consumer Has a Given Budget or Income