Answer to Question #288663 in Microeconomics for UnderScoreSomethin

Question

Mary jas homothetic preferences. When here income was $1000 , She bought 40 books and 60 newspapers. When her income increased to $1500 and the prices did not change she bought

A 60 books 40 newspapers

B 80 books 120 newspapers

C 60 books and 60 newspapers

D 40 books and 120 newspapers

E there is not enough information to determine what she would buy

Answer 1

When her income increased to $1500 and the prices did not change she might buy 60 books 90 newspapers, but there is not enough information to determine what she would buy.

So, the correct answer is E.