Skip to content
We use only essential cookies to keep you signed in and remember your preferences. See our Cookie Policy.
TestStop
MocksPracticeResourcesIndiaBlogPricing
Sign in
Questions › DSE › DSE 2017 › Q13
2 marks, −0.666666666666667Microeconomics › Budget constraint and consumer equilibrium › Demand under complements, substitutes and quasilinear utilityHardabout 4 min

DSE 2017 Question 13: Budget constraint and consumer equilibrium

A consumer has utility u(x,y,z)=y min⁡{x,z}u(x,y,z)=y\,\min\{x,z\}u(x,y,z)=ymin{x,z}. All three goods have the same price and the consumer has Rs.\ 100100100 to spend on them. The demands will be such that

Tap an option to check your answer.

Answer and worked solution

Checking your account…

Plain-text version

A consumer has utility u(x,y,z)=y min {x,z}. All three goods have the same price and the consumer has Rs.\ 100 to spend on them. The demands will be such that (A) y<x=z (B) y>x=z (C) x=y=z (D) none of the above

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.

  • GATE 2023 · Q27An individual is endowed with income of Rs. 142 and has the utility function U(x₁,x₂) = x₂(x₁+1), where x₁ ≥…
Practise Budget constraint and consumer equilibriumMore on Demand under complements, substitutes and quasilinear utility

Similar questions from other papers

  • CUET-PG 2026 · Q66Match the LIST-I with LIST-II. List I A. Marginal rate of Substitutions B. Budget Line C. Indifference Curve D. Price Ratio. List II I. Slope of Budget Line II. Ratio…
  • CUET-PG 2025 · Q37An individual's utility function for two goods - milk (M) and butter (B) is given as U(M,B) = 5M - 10B and the cost of each unit of the two goods is Rs 1 and the…
  • IIT JAM 2025 · Q50Suppose utility function of a consumer is u(x,y)=xy, where x and y are quantities of the two commodities consumed. If price of x is Re.1 and that of y is Rs.2, and…
  • UGC-NET 2025 · Q28Which of the following are true regarding the outcome of a consumer's optimization process? A. The marginal utility per rupee spent on each good is the same. B. The…
  • CUET-PG 2024 · Q19A 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

Question from the DSE 2017 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.