Question: Please provide the answer as soon as possible, need it urgently. There are two goods, apples and bananas. The price of apples is PA =

Please provide the answer as soon as possible, need it urgently.

There are two goods, apples and bananas. The price of apples is PA = $2, and the price of bananas is Pp = $3. A consumer has $120 to spend, and his utility function is U(A, B) = 2A-BS. With apples on the x axis, the slope of the budget line is At A=2, B=1, the marginal utility of A is and the marginal utility of B is v At the optimal bundle, the consumer buys apples and v bananas

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

You currently have $300 in the bank which pays a 5% pa interest rate. Apples currently cost $1 each at the shop and the inflation rate is 4% pa which is the expected growth rate in the apple price....

PLEASE give answer AS soon as possible. The Richmond Shirt Company makes two types of T-shirts: basic and custom. (Click the icon to view the additional information.) For March 2024, the Richmond...

QUESTION 7 There are two goods, apples and bananas. The price of apples is PA = $2, and the price of bananas is PB = $3. A consumer has $120 to spend, and his utility function is -3/2 U(A, B) =2A2B3....

Can you please solve this economics question? Thank you! 1. In a Ricardian world, Home and Foreign produce two goods, Apples and Bananas. In autarky, both countries produce both goods. The following...

QUESTIONS.... 1. Pure Exchange Economy In this problem we will go through the model scen in class using an example with specic assumptions about tastes and endowments. Hume and Foreign are endowed...

Homework #8 Due date: Tuesday, May 3. Problem 1 Consider an exchange economy with two consumers, named Lisa (L) and Bart (B), and two goods, apples (a) and bananas (b). Denote by (al, b4) Lisa's and...

please answer 1. An economy contains two people and two goods, apples and bananas. Both people like both goods, but value them differently. For person 1, 1 apple is exactly equivalent to 2 bananas:...

Ricardian trade. Consider the Ricardian model of trade. Two countriesHome and Foreigntrade two goods, apples and bananas. Labor is the only factor of production and the MPLs in each sector in each...

Consider two countries, Home and Foreign, which are closed to international trade. Home has 1200 units of labour available, and Foreign has 800 units. Both countries can produce two goods, apples and...

1 8 ZO Homework #8 Due date: Thesday, May 3. Problem 1 Consider an exchange economy with two consumers, named Lisa (L.) and Bart (B), and two goods, apples (a) and bananas (). Denote lw (c.84) Lisa's...

Hydrogen peroxide, H2O2, is a colorless liquid whose solutions are used as a bleach and an antiseptic. H2O2 can be prepared in a process whose overall change is H2(g) + O2(g) H2O2(l) Calculate the...

Why is an amount of cash today more valuable than the same amount of cash in the future?

Which of the following protocols prevents network switching loops from occurring by shutting down redundant links until they are needed? Question 5 9 options: RIP STP VLAN ARP

Read Carpenter v. United Stated 585 U.S. ___ (2018). To the best of your ability, in your own words, write out the "Facts" of the case: what happened and where

5. Get a third party to mediate, so that both parties have the opportunity to go back to their original negotiating point that they had before the third party put forward his/her proposal.

1. Discuss the following statements: a) What we seek to achieve is different from why we seek to achieve it. b) Thoughts are different from what we are thinking about. c) Writing to find out what one...

2. Provide new information and before 20 seconds have elapsed, add more infor-mation. The initial information will then be lost from memory for most people.