Read the report carefully and answer the questions based on the report:
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On the basis of given data above, the correct equation of price line will be. |
5X + 12Y= 100 10X + 5Y= 100 5QX + 10QY = 100 10QX + 5QY = 100 |
5QX + 10QY = 100 |
The correct answer is Option (3) → 5QX + 10QY = 100 The equation of the budget line is given by: PX⋅QX+PY⋅QY=M Where:
Now substitute the values: 5QX+10QY=100 This represents all combinations of quantities of Good X and Good Y that the consumer can afford with a ₹100 budget. Note: There appears to be a mistake in question. Instead of budget line, the question has used Price Line. |