Your budget is such that if you spend your entire income on two goods, and , you can afford either 4 units of and 6 units of , or 12 units of and 2 units of . If you spent all your income on , how many units of could you buy?
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Your budget is such that if you spend your entire income on two goods, x and y, you can afford either 4 units of x and 6 units of y, or 12 units of x and 2 units of y. If you spent all your income on x, how many units of x could you buy? (A) 7 (B) 16 (C) 15 (D) 18
Budget constraint and consumer equilibrium has come up 99 times in 7 exams since 2004.
This question is on Budget set and budget line, part of Budget constraint and consumer equilibrium in Microeconomics.
Which bundles a consumer can afford, the slope of the budget line, and how income and price changes shift it.
TestStop has 16 past-paper questions on this subtopic.
Question from the DSE 2009 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.