Question 15
MediumOriginal questionThe budget line of a consumer is 2x₁ + 4x₂ = 40. If he buys 10 units of good 1, how much of good 2 can he buy at most?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
10 units of good 1 cost 2 × 10 = ₹20, leaving ₹20.
₹20 ÷ ₹4 = 5 units of good 2.
- Concept
- Reading a budget line equation
- Typical timeTypical
- 70 s
- Your timeYours
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Ten questions from Budget Line & Optimal Choice, at your own pace.