1) A consumer has a $10 budget to split between Mangoes and Pineapples. The price of a mango is $1 and the price of a Pineapple is $2. The marginal utility of the consumer is MUMangoes QPmeappIes MUPmeappIes e s e e How many Mangoes and Pineapples will the consumer purchase? 2) Consider the indifference curve below. 32 30 28 26 $24 122 020 18 t h 16 i 14 e12 $ 10 ONADOO O 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 Saladsa) Suppose that the price of a smoothie is $5 and the price of a salad is $5. The consumer has a budget of $80. Using the indifference curve, determine the consumer's consumption choice. b) Suppose that the consumer's income now doubles to $160. How does the consumption choice change? c) Returning to part a, suppose that the price of a salad increases to $10. How does the consumer's consumption choice change? What is the income and substitution effect? 3) Give an example of an information asymmetry you encounter in your own life. 4) Explain why consumer's may not be able to make a rational choice