You are a farmer, and have 10 pounds of beef and 100 pounds of corn. The market price of beef is $10 per pound; corn is $1 per pound. You can consume the corn and beef that you have, you can sell beef and use the income to buy more corn, or you can sell some corn to increase your consumption of beef. What is the maximum quantity of beef that you can consume?
Group of answer choices
20
15
110
10
Flag question: Question 2
Please refer to the information given in Q1. What is the maximum quantity of corn that you can consume?
Group of answer choices
100
200
1000
110
Flag question: Question 3
Please refer to the information given in Q1. Now suppose that Point E is your optimal bundle chosen given the original prices (represented by the black budget line). The yellow line represent the new budget line given a price reduction in the corn price. Which of the following statements is true?
Group of answer choices
You can sell some corn and buy more beef and be better off.
You can only be better off when the beef price falls.
No matter what you do, you are worse off.
You can sell some beef and buy more corn and be better off.