Question

13. Aji’s utility function for Blueberry (b) and Raspberry (r) is given as follows:

U = f(b, r); Budget constraint: 100 = 4b + 5r

a. Graph the budget constraint, labeling all relevant items, put Blueberry in the horizontal axis and Raspberry on the Vertical axis.

For each bundle given below, is the bundle feasible for this budget constraint? What can you say about the bundle possibly being the utility-maximizing bundle?

b. Bundle (10, 15)

c. Bundle (7, 13)

d. Bundle (5, 16)

Answer 1