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Elodia [21]
3 years ago
11

Lly wants to maximize her benefit of consuming apples and bananas, given her fixed budget of $10 for these two fruits. The price

of an apple is $1, and the price of a banana is $0.50. In order to derive Lily's demand curve for bananas, we need to- O A. draw a downward sloping line with slope of -2 O B. sove the buyer's problem for her multiple times and ind the optimal number of bananas, when price of a bananasia a a ifferent lovel ach time O C. solve the buyer's problem for her once, and find the optimal number of bananas, when price of a bananas is $0.50 O D. draw a downward sloping line with slope of -1 rial Economics: Applications, Strategy, and Tactics PDF Free
Business
1 answer:
Xelga [282]3 years ago
7 0

Answer:

C. solve the buyer's problem for her multiple times and find the optimal number of bananas, when price of a bananas is at a different level each time

Explanation:

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Answer:

The correct answer is option A.

Explanation:

The dynamic model of aggregate supply and aggregate demand shows that if an economy the total spending in the economy increases faster than total production, there will be a shortage. This shortage will cause the price level to increase and will ultimately lead to inflation.  

When the increase in aggregate demand is greater than the increase in aggregate supply, it will create a shortage in the economy. The demand for goods and services will be more than the supply of goods and services. This will cause the price level to increase.

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Answer and Explanation:

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