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Leo Consumes Only Apples and Bananas

Question 3

Multiple Choice

Leo consumes only apples and bananas.He prefers more apples to fewer, but he gets tired of bananas.If he consumes fewer than 24 bananas per week, he thinks that 1 banana is a perfect substitute for 1 apple.But you would have to pay him 1 apple for each banana beyond 24 that he consumes.The indifference curve that passes through the consumption bundle with 31 apples and 36 bananas also passes through the bundle with A apples and 18 bananas, where A equals


A) 29.
B) 23.
C) 31.
D) 25.
E) None of the above.

Correct Answer:

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