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Suppose the person faced with the budget constraint described in problem 3.1 has preferences for apples (a) and bananas (b) given by?

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Final answer:

The question revolves around finding the optimal choice for a person with a given budget constraint and specific preferences for apples and bananas, following the principles of microeconomics and consumer behavior.

Step-by-step explanation:

The student is asking about consumer choice related to a budget constraint in an economics context. The question is about how to define the optimal choice for a person with specific preferences for two goods, apples (a) and bananas (b), similar to the example in the provided information regarding choices between candy and movies. To respond to this, we refer to the principles of microeconomics, particularly the theory of consumer behavior. The optimal choice for any individual or 'agent' is the point where their indifference curve is tangent to the budget constraint line. This point represents the highest level of satisfaction or utility that the person can achieve given their income and prices of the goods. In our scenario, to find the preferred combination of apples (a) and bananas (b), we would look for the point on the budget constraint that touches the highest indifference curve possible, as this implies that the consumer cannot reach a higher level of utility with their budget.

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