Show through some examples every other way of allocating

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Suppose a person has $8 to spend only on apples and bananas. Apples cost $0:4 each, and bananas cost $0:1 each. Furthermore, his preferences for apples (A) and bananas (B) can be represented by U = pAB. a) If A = 5 and B = 80, what will utility be? b) If A = 10, what value of for B will provide the same utility in part a? c) If A = 20, what value of for B will provide the same utility in parts a and b? d) Graph the indifference curve implied by parts a through c. e) Give the budget constraint, which of the points identi?ed in parts a through c can be bought by this person? f) show through some examples that every other way of allocating income provides less utility than does the point identi?ed in part b. graph this utility maximizing situation.c

Reference no: EM13146855

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