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Anne, Betty and Carol went to their local produce store to buy some fruit. Anne bought one pound of apples and two pounds of bananas and paid $2.11. Betty bought two pounds of apples and one pound of grapes and paid $4.06. Carol bought one pound of bananas and two pounds of grapes and paid $4.45.
(a) Let x = price of a pound of apples, y = price of a pound of bananas and z = price of a pound of grapes. Write out 3 linear equations representing the purchases of Anne, Betty and Carol.
(b) Write out the augmented matrix for your system of 3 linear equations of part (a).
(c) Use elementary row operations to row reduce the augmented matrix of part (b) to a reduced row-echelon matrix.
(d) What is the price per pound for each of the three fruits?
(a) Derive the Marshalian demand functions and the indirect utility function for the following utility function: u(x1, x2, x3) = x1 1/6 x2 1/6 x3 1/6 x1≥ 0, x2≥0,x3≥ 0
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