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 › JNU › JNU SSS 2011 › Q96
1 mark, −0.25Microeconomics › Budget constraint and consumer equilibrium › Budget set and budget lineHardabout 3 min

JNU SSS 2011 Question 96: Budget constraint and consumer equilibrium

In situation I : Price of good XXX is twice the price of good YYY; and the consumer spends his entire income on buying 6 units of good XXX and 20 units of good YYY. In situation II : Consumer's income is double of his income in situation I, price of good YYY is twice the price of good YYY in situation I, and the price of good XXX is the same as in situation I. The consumer wants to continue consuming 20 units of good YYY in situation II. The maximum number of units of good XXX that he can purchase in situation II is

Tap an option to check your answer.

Answer and worked solution

Checking your account…

Plain-text version

In situation I: Price of good X is twice the price of good Y; and the consumer spends his entire income on buying 6 units of good X and 20 units of good Y. In situation II: Consumer's income is double of his income in situation I, price of good Y is twice the price of good Y in situation I, and the price of good X is the same as in situation I. The consumer wants to continue consuming 20 units of good Y in situation II. The maximum number of units of good X that he can purchase in situation II is (A) 12 (B) 14 (C) 16 (D) 6

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.

Practise Budget constraint and consumer equilibriumMore on Budget set and budget line

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 JNU SSS 2011 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.