Business, 04.04.2020 03:17 jaylynC

The marginal utility of the last unit of apples consumed is 12 and the marginal utility of the last unit of bananas consumed is 8. What set of prices for apples and bananas, respectively, would be consistent with consumer equilibrium

Answers: 3

Show answers

Answers

Answer from: whittingtondee7084

The correct question is as follows:

The marginal utility of the last unit of apples consumed is 12 and the marginal utility of the last unit of bananas consumed is 8. What set of prices for apples and bananas, respectively, would be consistent with consumer equilibrium

a. $8 and $12

b. $6 and $4

c. $16 and $9

d. $4 and $6

The set of prices which would be consistent with consumer equilibrium will be: Choice B: $6 and $4 respectively.

Discussion:

Marginal utility of the last unit of apples consumed = 12unitsMarginal utility of the last unit of bananas consumed = 8units

The market price for apples and bananas which, will be consistent with the consumer's equilibrium can be evaluated as follows;

Since; 12/ 8 = 3/2and $6/$4 = 3/2.We can say $6 and $4 are the set of prices for apples and bananas, respectively, which would be consistent with consumer equilibrium.

Another question on Business

Business, 22.06.2019 20:00

Ajax corp's sales last year were $435,000, its operating costs were $362,500, and its interest charges were $12,500. what was the firm's times-interest-earned (tie) ratio? a. 4.72b. 4.97c. 5.23d. 5.51e. 5.80

Answers: 1

Answer

Business, 22.06.2019 21:00

Identify whether the statements are true or false by dragging and dropping the appropriate term into the bin provided. long-run economic growth is unlikely to be sustainable because of finite natural resources. in the modern economy, countries that possess few domestic natural resources essentially have no chance to develop economically. finding alternatives to natural resources will be very important to long-term economic growth. in the modern economy, human and physical capital are generally less important in productivity than natural resources. in the 19th century, countries with the highest per capita gdp were nearly always abundant in minerals and productive farming land.

Answers: 1

Answer

Business, 23.06.2019 01:30

How is systematic decision making related to being financially responsible

Answers: 1

Answer

Business, 23.06.2019 10:00

The american dream includes home ownership. but in the last few years, it's gotten harder and harder to own a home. do you think home ownership is important to most americans today? why or why not?

Answers: 1

Answer

You know the right answer?

The marginal utility of the last unit of apples consumed is 12 and the marginal utility of the last...

Questions