There are two goods that are priced at Rs 5 each and are available only in integral units. If a consumer has Rs 20, then the bundle that this consumer can afford to buy is:

(1, 3)

The correct answer is Option (3) → (1, 3)

Let the two goods be Good A and Good B.
Price of each good = Rs 5
Consumer’s income = Rs 20

The budget constraint is:

5x+5y≤20⇒x+y≤4

(where x and y are the quantities of the two goods, in integral units)

Now let's check each option:

• (3, 3) → 3 + 3 = 6 → exceeds the limit of 4 

• (4, 5) → 4 + 5 = 9 → too expensive 

• (1, 3) → 1 + 3 = 4 → total cost = 5×1 + 5×3 = Rs 20 

• (5, 4) → 5 + 4 = 9 → too expensive