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Questions › DSE › DSE 2011 › Q41
2 marksMicroeconomics › Budget constraint and consumer equilibrium › Demand under complements, substitutes and quasilinear utilityModerateabout 3 min

DSE 2011 Question 41: Budget constraint and consumer equilibrium

A consumer has utility function u(x1,x2)=min⁡{2x1+x2, x1+2x2}u(x_{1},x_{2})=\min\{2x_{1}+x_{2},\ x_{1}+2x_{2}\}u(x1​,x2​)=min{2x1​+x2​, x1​+2x2​}. Her income is y=100y=100y=100, the prices are p1=20p_{1}=20p1​=20 and p2=30p_{2}=30p2​=30. The amount of x1x_{1}x1​ in the utility maximizing bundle is

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A consumer has utility function u(x₁,x₂)=min {2x₁+x₂, x₁+2x₂}. Her income is y=100, the prices are p₁=20 and p₂=30. The amount of x₁ in the utility maximizing bundle is (A) 7 (B) 5 (C) 2 (D) 0

Also written as: A consumer has utility function u(x_1,x_2)=min {2x_1+x_2, x_1+2x_2}. Her income is y=100, the prices are p_1=20 and p_2=30. The amount of x_1 in the utility maximizing bundle is

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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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