Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

Read the report carefully and answer the questions based on the report:

Consumer's Budget

₹100

Price of Good X

₹5 per unit

Price of Good Y

₹10 per unit

How much units of Good Y can the consumer consume if she spends her entire income on that good?

Options:

5 units

10 units

15 units

20 units

Correct Answer:

10 units

Explanation:

The correct answer is Option (2) → 10 units

Given:

  • Consumer’s Budget = ₹100

  • Price of Good Y = ₹10 per unit

Maximum quantity of Good Y= Consumer’s Budget / Price of good Y

                                                = 100 / 10 = 10 Units

Therefore, the consumer can consume 10 units of Good Y.