Asked by Michael Byars on Jul 24, 2024
Verified
If a consumer has an income of $100, the price of X is $2, and the price of Y is $4, what is the maximum quantity of Y the consumer is able to purchase?
A) 400
B) 100
C) 50
D) 25
Consumer Income
The total earnings received by consumers from all sources, influencing their spending patterns and ability to purchase goods and services.
Maximum Quantity
The highest amount of a product that can be produced or supplied under certain conditions.
Price of Y
This refers to the cost or value assigned to a specific good or service denoted by "Y", which can vary based on market demand, supply, and other economic factors.
- Acquire knowledge about the budget line, signifying the various combinations of products that can be bought by a consumer with a particular income.
Verified Answer
MJ
Mary Jean BunalJul 24, 2024
Final Answer :
D
Explanation :
With $100 and the price of Y being $4, the maximum quantity of Y the consumer can purchase is $100/$4 = 25 units.
Learning Objectives
- Acquire knowledge about the budget line, signifying the various combinations of products that can be bought by a consumer with a particular income.