Mary Granola consumes tomatoes and nectarines. Mary's indifference curves are kinky. When she is consuming more tomatoes than nectarines, she is willing to trade 3 tomatoes for 1 nectarine. When she is consuming more nectarines than tomatoes, she is just willing to trade 4 nectarines for 1 tomato. Let P1, be the price of nectarines, and P2 the price of tomatoes. Mary maximizes her utility subject to the budget constraint. Which statement is true?

Mary Granola consumes tomatoes and nectarines. Mary's indifference curves are kinky. When she is consuming more tomatoes than nectarines, she is willing to trade 3 tomatoes for 1 nectarine. When she is consuming more nectarines than tomatoes, she is just willing to trade 4 nectarines for 1 tomato. Let P1, be the price of nectarines, and P2 the price of tomatoes. Mary maximizes her utility subject to the budget constraint. Which statement is true?

Mary Granola consumes tomatoes and nectarines. Mary's indifference curves are kinky. When she is consuming more tomatoes than nectarines, she is willing to trade 3 tomatoes for 1 nectarine. When she is consuming more nectarines than tomatoes, she is just willing to trade 4 nectarines for 1 tomato. Let P1, be the price of nectarines, and P2 the price of tomatoes. Mary maximizes her utility subject to the budget constraint. Which statement is true?





Answer: When P1 > 3P2, she must consume only tomatoes.