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?
Answer & explanation
Correct answer: option 2
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.