Consider a consumer with $10 to spend on these two goods where the price of apples is always $2 each.
Apples Oranges
Q U Q U
1 50 1 30
2 75 2 56
3 85 3 78
4 90 4 96
5 92 5 108
6 93 6 116
a) Find the utility maximizing combination of apples and oranges if oranges cost $4 each. Explain why the consumer didn't choose the bundle of 3 apples and 4 oranges.
b) Repeat all of part (a) if oranges cost $1 each.