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Consider two goods, x and y, and suppose that the prices of these goods are given by Px=15 and Py=10, respectively. Suppose that a consumer's
Consider two goods, x and y, and suppose that the prices of these goods are given by Px=15 and Py=10, respectively. Suppose that a consumer's income is given by I=60 . What can be said about the bundle b= (2,3) ?
This bundle is affordable, with income left over. | ||
This bundle is exactly affordable, with no income left over. | ||
This bundle is not affordable. | ||
Cannot be determined without information concerning the consumer's preferences. |
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