There are three commodities—the first commodity has a negative price, per unit; the second commodity is priced at per unit while the third is priced at per unit. Income of the person is ₹ 100 per day. Then which one of the following is not true?
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There are three commodities—the first commodity has a negative price, -1 per unit; the second commodity is priced at +1 per unit while the third is priced at +2 per unit. Income of the person is ₹ 100 per day. Then which one of the following is not true? (A) An individual may afford to consume positive amounts of each per day (B) An individual may afford to consume any amounts of goods 2 and 3 per day (C) Any individual may afford to consume (0, 0, 60) (D) An individual may afford to consume (20, 0, 60)
Budget constraint and consumer equilibrium has come up 99 times in 7 exams since 2004.
This question is on Non-standard budgets: bundles, rationing and quantity limits, part of Budget constraint and consumer equilibrium in Microeconomics.
Budget sets with bundled offers, tie-ins, quantity caps, block prices or liquidity constraints.
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Question from the JNU SSS 2015 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.