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

Monjur Alahi

Suppose a consumer can afford to buy 6 units of Good-1 and 8 units of Good-2 if she spends her entire income. The prices of the two goods are Rs.6 and Rs.8 respectively. How much is the consumer's income?


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Salim Ahmed Kawsar

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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

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Salim Ahmed Kawsar

Call

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

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2 views
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