Suppose a consumer can afford to buy 8 units of good X and 10 units of good Y. She spends her entire income. The prices of two goods are ₹7 and ₹9 respectively. The consumer's income is ₹ ____________.
Answer & explanation
Correct answer: option 2
The correct answer is option (2) : ₹146
To determine the consumer's income, we need to calculate the total expenditure based on the prices and quantities of goods X and Y that she can afford.
Given:
- Price of good X = ₹7
- Price of good Y = ₹9
- Maximum units of good X = 8 units
- Maximum units of good Y = 10 units
- Total expenditure (income) = Price of X * Quantity of X + Price of Y * Quantity of Y
Calculate total expenditure:
Total expenditure=(7×8)+(9×10)
Total expenditure=56+90
Total expenditure=146