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Questions › DSE › DSE 2019 › Q25
0 marksMicroeconomics › Budget constraint and consumer equilibrium › Budget set and budget lineEasyabout 1 min

DSE 2019 Question 25: Budget constraint and consumer equilibrium

Your budget is such that if you spend your entire income, you can afford either 4 units of good xxx and 6 units of good yyy, or 12 units of good xxx and 2 units of good yyy. What is the ratio of the price of xxx to the price of yyy?

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Your budget is such that if you spend your entire income, you can afford either 4 units of good x and 6 units of good y, or 12 units of good x and 2 units of good y. What is the ratio of the price of x to the price of y? (A) 1/3 (B) 2/3 (C) 1/2 (D) 2

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

What this question tests

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.

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Question from the DSE 2019 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.