Question 10
MediumOriginal questionWhich bundle lies on the budget line 4x₁ + 5x₂ = 40?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
(5, 4): 4 × 5 + 5 × 4 = 20 + 20 = 40. It spends exactly the income.
(4, 5) costs 41, (6, 4) costs 44 and (10, 2) costs 50, all more than 40.
- Concept
- Testing a bundle against a budget line
- Typical timeTypical
- 70 s
- Your timeYours
- —
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Ten questions from Budget Line & Optimal Choice, at your own pace.