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Questions › CUET-PG › CUET-PG 2024 › Q19
4 marks, −1Microeconomics › Budget constraint and consumer equilibrium › Demand under complements, substitutes and quasilinear utilityModerateabout 1 min

CUET-PG 2024 Question 19: Budget constraint and consumer equilibrium

A utility maximizing consumer has a utility function given by U(X,Y)=2X+YU(X, Y) = 2X + YU(X,Y)=2X+Y. He has a budget constraint given by X+2Y=10X + 2Y = 10X+2Y=10. In equilibrium he purchases

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A utility maximizing consumer has a utility function given by U(X, Y) = 2X + Y. He has a budget constraint given by X + 2Y = 10. In equilibrium he purchases (A) X*=10, Y*=10 (B) X*=0, Y*=5 (C) X*=10, Y*=0 (D) X*=5, Y*=6

Budget constraint and consumer equilibrium has come up 99 times in 7 exams since 2004.

What this question tests

This question is on Demand under complements, substitutes and quasilinear utility, part of Budget constraint and consumer equilibrium in Microeconomics.

Deriving demand when preferences are L-shaped, linear or quasilinear, and what that implies for income and price responses.

TestStop has 23 past-paper questions on this subtopic; the nearest in year are below.

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Question from the CUET-PG 2024 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.