Question

Moira purchases both dried cranberries, at $5.00 per pound, and dried blueberries, at $10.00 per pound. Use the data in the tables to answer the questions. Dried cranberries Dried blueberries Pounds Pounds Total utility 30 - Total utility 20 35 45 54 2 3 50 65 3 4 Moira bought two pounds of blueberries and three pounds of cranberries this month. If she still has $10.00 in her budget, she should buy more Suppose blueberries go on sale at half price. Which of the statements is true when the price of blueberries falls to $5.00 per pound? Select all that apply. The marginal utility per dollar of the first pound of cranberries is now 8. According to the income effect, Moira will not buy more cranberries. Because their price has not changed, she cannot afford more. According to the substitution effect, Moira will buy more blueberries because their marginal utility Her dollar has increased Moira's total utility from blueberries increases.

Answer 1

0 By Blo, she MUZB = 15 TPB = 10) Muzc= 15 The 25] Thus buy 2 cranberries more then when Blueberries go on sale for helf prece MU/4 = 30 -6 for 1 pound of Camberuis mcoans is C&D. Mols from bluebernis increases and total Wility also increases