Economics 9708 · AS & A Level · Indifference curves and budget lines

Indifference curves and budget lines — practice question

A consumer has $100 available to spend on two products, X and Y. The budget line indicates the various combinations of products X and Y that can be bought when the consumer spends all of their income. If the price of product Y rises to $10, what is the largest number of units of product X and product Y that the consumer can now buy?

  • Aproduct X 5, product Y 10
  • Bproduct X 5, product Y 20
  • Cproduct X 10, product Y 10
  • Dproduct X 20, product Y 10

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