Question 18
HardOriginal questionA budget line passes through (2, 8) and (6, 4), with income ₹40. What are P₁ and P₂?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
Moving from (2, 8) to (6, 4): 4 more of good 1 for 4 less of good 2, so P₁ = P₂.
2P₁ + 8P₂ = 40 with P₁ = P₂ gives 10P = 40, so both prices are ₹4.
- Concept
- Prices from two points on the line
- Typical timeTypical
- 100 s
- Your timeYours
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