Multiple Choice
Lily wants to maximize her benefit of consuming apples and bananas,given her fixed budget of $10 for these two fruits.The price of an apple is $1,and the price of a banana is $0.50.In order to derive Lily's demand curve for bananas,we need to ________.
A) solve the buyer's problem for her once, and find the optimal number of bananas, when price of a bananas is $0.50
B) solve the buyer's problem for her multiple times and find the optimal number of bananas, when price of a bananas is at a different level each time
C) draw a downward sloping line with slope of -1
D) draw a downward sloping line with slope of -2
Correct Answer:
Verified
Correct Answer:
Verified
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