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A consumer has Rs. 10 and both goods X and Y are price at Rs. 2 and are available in integer units .(a) give the bundles that this consumer can afford to buy (b) give the bundle that cost exactly Rs. 10 (c) give two bundles that this consumer connect afford to buy . |
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Answer» SOLUTION :( a) The bundles that this CONSUMER can afford to buy , (0,0),(0,1),(0,2),(0,3),(0,4),(0,5),(1,0),(1,1),(1,2),(1,3),(1,4),(2,0),(2,1),(2,2),(2,3),(3,0),(3,1),(3,2),(4,0),(4,1) and (5,0) . (b) Bundles that cost exactly Rs 10 are, (0,5) , (1,4) , (2,3) , (3,2) , (4,1) ,(5,0). (c)Two bundles that the consumer cannot afford to buy are, (3,3),(4,2). |
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