Suppose a consumer can afford to buy 6 units of good 1 and 8 units of good 2 if she spends her entire income.

(a) Woollen shawl 

(b) Percentage of imcome saved = 100 – (45 + 30) = 25%  25% of x = 4500 x =4500 * 100/25 =18000

(a) Ratio of Expenses = 4 : 2 : 5, therefore amount spend on clothes, i.e. 2x = 5540 ∴ x = 2770 Total exp = (4 + 2 + 5)x = 11x = 11...

Back scratch test for upper body flexibility

If a consumer has monotonic preferences, then her preferences will rank as follows:  1st(10,10) 2nd(10,9) 3rd(9,9)

Given, eD = - 1 In this case, when elasticity of demand is (-) 1, total expenditure will remain constant. Given, Total expenditure = Rs.50 TE does not change When...

Budget equation is given as : PxX+PyY=M Let Good-1 be X and Good-2 be Y Putting the values, we get : (6).(6) + (8).(8) = 36 + 64= Rs.100

Usable Benefit

Product combination