Question 73
HardOriginal questionPₓ = ₹4 and Pᵧ = ₹2. For units 1 to 5, the MU of X is 20, 16, 12, 8, 4 and the MU of Y is 12, 10, 8, 6, 4 utils. Match each income with its equilibrium combination.
| List I | List II |
|---|---|
| A. ₹8 | I. 2 X and 3 Y |
| B. ₹14 | II. 4 X and 5 Y |
| C. ₹20 | III. 1 X and 2 Y |
| D. ₹26 | IV. 3 X and 4 Y |
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
Equal ratios at 5: 1 X, 2 Y costs ₹4 + ₹4 = ₹8. At 4: 2 X, 3 Y costs ₹14.
At 3: 3 X, 4 Y costs ₹20. At 2: 4 X, 5 Y costs ₹26.
- Concept
- Equilibrium at different incomes
- Typical timeTypical
- 120 s
- Your timeYours
- —
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