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Business, 07.03.2020 01:14 cxttiemsp021

In the economy of Mungo, discussed in Problem 12, there is a third person called Ike. Ike has a red income of 82 and a blue income of 25. Recall that blue prices are 1 bcu (blue currency unit) per unit of ambrosia and 1 bcu per unit of bubble gum. Red prices are 2 rcus (red currency units) per unit of ambrosia and 6 rcus per unit of bubble gum. You have to pay twice for what you buy, once in red currency, once in blue currency. If Ike spends all of his blue income but not all of his red income he must consume a. at least 8 units of bubble gum. b. at least 17 units of ambrosia. c. exactly twice as much bubble gum as ambrosia. d. at least 13 units of bubble gum. e. equal amounts of ambrosia and bubble gum.

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In the economy of Mungo, discussed in Problem 12, there is a third person called Ike. Ike has a red...

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