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Budget Line & Optimal Choice · Question 8 of 67

In the graph, how much of the ₹100 income is left over if the consumer buys bundle C?

Question 8

MediumOriginal question

In the graph, how much of the ₹100 income is left over if the consumer buys bundle C?

A budget line for M = ₹100, P₁ = ₹5, P₂ = ₹10, running from 10 units of good 2 (no good 1) to 20 units of good 1 (no good 2). Bundle A is (8, 6), bundle B is (10, 6) and bundle C is (6, 4).
Options for question 8

Show the answer and explanation
CorrectNot quiteAnswer C

Correct answer: C

Explanation

  1. C (6, 4) costs 6 × ₹5 + 4 × ₹10 = ₹70.

  2. Income left = ₹100 − ₹70 = ₹30.

Concept
A bundle inside the budget line
Typical time
70 s
Your time
—
The rule this testsBudget set and budget line
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Ten questions from Budget Line & Optimal Choice, at your own pace.

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Ten questions from Budget Line & Optimal Choice, at your own pace.

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