A consumer has ₹50; P₁ = ₹5 and P₂ = ₹10. How many bundles with whole-number quantities lie exactly on the budget line?

Explanation

1. 01

   The line is 5x₁ + 10x₂ = 50, or x₁ + 2x₂ = 10.

2. 02

   x₂ can be 0, 1, 2, 3, 4 or 5, each with x₁ = 10 − 2x₂ a whole number: 6 bundles.