Theory Of Consumer Behaviour

Question

A consumer wants to consume two goods. The prices of two goods are र 4 and र 5
respectively. The consumer's income is र 20.
How much of good 1 the consumer can consume if she spends her entire income on that good?

Answer

The consumer can consume 5 (= 20 ÷ 4) units if she spends her entire income on purchase of good 1 (here x1).

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