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Questions › DSE › DSE 2009 › Q41
2 marksMicroeconomics › Budget constraint and consumer equilibrium › Corner solutionsHardabout 4 min

DSE 2009 Question 41: Budget constraint and consumer equilibrium

A consumer spends an income of Rs. 100 on two goods, dosas (xxx) and pizzas (yyy), fractions allowed, with utility U=ex2+y2U=e^{x^{2}+y^{2}}U=ex2+y2. The price of a dosa is Rs. 5 and of a pizza is Rs. 10. The number of pizzas this consumer will buy is

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A consumer spends an income of Rs. 100 on two goods, dosas (x) and pizzas (y), fractions allowed, with utility U=e^(x²+y²). The price of a dosa is Rs. 5 and of a pizza is Rs. 10. The number of pizzas this consumer will buy is (A) 0 (B) 10 (C) 5 (D) 8

Also written as: A consumer spends an income of Rs. 100 on two goods, dosas (x) and pizzas (y), fractions allowed, with utility U=e^(x^2+y^2). The price of a dosa is Rs. 5 and of a pizza is Rs. 10. The number of pizzas this consumer will buy is

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

What this question tests

This question is on Corner solutions, part of Budget constraint and consumer equilibrium in Microeconomics.

Optima at the edge of the budget set, where the consumer spends nothing on one good.

TestStop has 8 past-paper questions on this subtopic.

Practise Budget constraint and consumer equilibriumMore on Corner solutions

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Question from the DSE 2009 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.