Determine the corresponding net demands for bananas and


Ann is initially endowed with 30 bananas and 30 apples. 1. Assume pp23. Write down Ann's budget constraint and plot it in the aphal baea or which Aa i bryi, the apples and selling bananas, and all bundles for which Ann is selling the apples and buying bananas. 2. Assume U(?1,22) z1z2 where zi denotes bananas and z2 denotes ap- analytically (it means, calculate it) and find the MRS. Plot the indifference curve and the budget line in the corresponding diagram. 3. Now assume P2-2 and find the optimal choices of Ann for P1-1, P1 = 2,P1 = 3, Determine the corresponding net demands for bananas and apples exchange strategy comparing the MRS at her endowment point with the relative price

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Business Economics: Determine the corresponding net demands for bananas and
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