Exhibit 20-3 ​ Refer to Exhibit 20-3

Multiple Choice

Exhibit 20-3 ​ Refer to Exhibit 20-3. Assume that the price of oranges increases to $2, while the price of apples remains at $1, and Linda allocates $5 of the weekly food budget to purchasing apples and oranges. If Linda wants to maximize her utility, her new consumption bundle will consist of

A) 1 apple and 2 oranges.
B) 3 apples and 1 orange.
C) 5 apples and no oranges.
D) 2 apples and 1 orange.