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 of Good X can the consumer consume if she spends her entire income on that good?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 20 units
Given:
-
Consumer’s Budget = ₹100
-
Price of Good X = ₹5 per unit
Maximum quantity of Good X= Consumer’s Budget / Price of good X
= 100 / 5 = 20 Units
Therefore, the consumer can consume 20 units of Good X.