Economics 9708 · AS & A Level · Utility and rational consumer behaviour

Utility and rational consumer behaviour — practice question

A household spends its entire income on bananas and apples, and buys the following: bananas 5 kg at $2.50/kg; apples 10 kg at $1.00/kg. The household gets twice the utility from the fifth kg of bananas as it gets from the tenth kg of apples. What action should the household take to maximise utility from buying these fruits?

  • Apurchase of bananas: increase; purchase of apples: decrease
  • Bpurchase of bananas: decrease; purchase of apples: increase
  • Cpurchase of bananas: no change; purchase of apples: decrease
  • Dpurchase of bananas: no change; purchase of apples: increase

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