Janice really likes potatoes. At best any other goods are worth less than a dollar to her, potatoes cost $0.50 per pound, and she has $5.00 that she could possibly spend on potatoes or other items. Suppose she feels that the first pound of potatoes is worth $1.50, the second pound is worth $1.14, the third pound is worth $1.05, and all subsequent pounds are worth $0.30. Instructions: Enter your answers as whole numbers. a. How many pounds of potatoes will she purchase? pound(s) of potatoes. b. What if she only had $2.00 to spend? pound(s) of potatoes.
ANSWER:
a) Janice will purchase the potatoes until the value of potatoes is less then the cost of potatoes.
since janice has $5 to spend on potatoes and the first pound of potato is worth $1.50 (cost is $0.50) and so she will purchase the first pound of potatoes.
she will also purchase the 2nd pound of potatoes as 2nd pound of potato is worth $1.14 (cost is $0.50) and so she will purchase the 2nd pound of potatoes.
she will also purchase the 3rd pound of potatoes as 3rd pound of potato is worth $1.05 (cost is $0.50) and so she will purchase the 3rd pound of potatoes.
since rest of potatoes are worth $0.30 per pound ,so she will not purchase more then 3 pounds worth of potatoes for $1.50 ($0.50 * 3)
so the answer is 3
b) if she had $2 to spend , she will still purchase 3 pounds worth of potatoes as the cost of 3 pounds worth of potatoes will be $1.50 and since the 4th pound of potatoes onwards , the worth will be less then the cost , so the purchase won't be affected if janice only has $2 to spend on potatoes
so the answer is 3.
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