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A country has a shortage of wheat . In order to limit the demand for wheat, the country's government decides to limit the purchase of
A country has a shortage of wheat. In order to limit the demand for wheat, the country's government decides to limit the purchase of food to 5 bushels of wheat or less. Let 1x1 be wheat and 2x2 be the other goods. Suppose that the prices of the two goods and the income of a consumer in the country are (4,2,10)(4,2,10). Suppose that (1,2)=(2,3)(x1,x2)=(2,3) is to be chosen by the consumer.
Show that the consumer exhaust the budget/ does not exhaust the budget/cannot afford the bundle.
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