Asked by
Eugenia Abarca
on Dec 01, 2024
Verified
Suppose that Mario consumes eggplants and tomatoes in the ratio of 1 bushel of eggplants per 1 bushel of tomatoes.His garden yields 30 bushels of eggplants and 10 bushels of tomatoes.He initially faced prices of $10 per bushel for each vegetable, but the price of eggplants rose to $20 per bushel, while the price of tomatoes stayed unchanged.After the price change, he would
A) increase his eggplant consumption by 3.33 bushels.
B) decrease his eggplant consumption by at least 3.33 bushels.
C) increase his consumption of eggplants by 5.33 bushels.
D) decrease his consumption of eggplants by 5.33 bushels.
E) decrease his tomato consumption by at least 1 bushel.
Bushel
A volume measure used in agriculture, particularly in the United States, equivalent to 8 dry gallons or about 35.24 liters.
Consumption
The use of goods and services by households or individuals for personal needs or to satisfy their utility.
- Assess the consequences of changing prices and income on the equilibrium of consumers.
- Comprehend the relationship between price adjustments and demand levels by evaluating elasticity.
Verified Answer
HT
Learning Objectives
- Assess the consequences of changing prices and income on the equilibrium of consumers.
- Comprehend the relationship between price adjustments and demand levels by evaluating elasticity.