Suppose a consumer wants to consume two goods which are available only in integer units. The two goods are equally priced and the consumer income is र 40.
Write down all the bundles that are available to the consumer.
Among the available bundles, identify those which cost her exactly र 40.

Solution

Let the price be र 10 each of good 1 and good 2. The bundles available to consumer are:

(i) (0, 0), (0, 1), (0, 2), (0, 3), (0, 4); (1, 0), (1, 1), (1, 2), (1, 3); (2, 0), (2, 1), (2, 2); (3, 0), (3, 1), (4, 0).
These bundles are available because all the above bundles cost her र 40 or less.
(ii) (0, 4), (1, 3), (2, 2), (3, 1), (4, 0) because all these bundles cost her exactly र 40.

Some More Questions From Theory Of Consumer Behaviour Chapter

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Theory Of Consumer Behaviour

Suppose a consumer wants to consume two goods which are available only in integer units. The two goods are equally priced and the consumer income is र 40.
Write down all the bundles that are available to the consumer.
Among the available bundles, identify those which cost her exactly र 40.

Some More Questions From Theory Of Consumer Behaviour Chapter

What are two approaches to attain the state of consumer's equilibrium?

Define indifference curve.

What is meant by marginal rate of substitution (MRS)?

Why is MRS always diminishing?

When does a consumer attain equilibrium according to indifference curve approach?

Give meaning of demand.

Name two determinants of demand.

List the factors that cause changes in demand.

What is law of demand?

What is demand schedule?

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For Daily Free Study Material Join wiredfaculty

Theory Of Consumer Behaviour

Suppose a consumer wants to consume two goods which are available only in integer units. The two goods are equally priced and the consumer income is र 40.Write down all the bundles that are available to the consumer.Among the available bundles, identify those which cost her exactly र 40.

Some More Questions From Theory Of Consumer Behaviour Chapter

What are two approaches to attain the state of consumer's equilibrium?

Define indifference curve.

What is meant by marginal rate of substitution (MRS)?

Why is MRS always diminishing?

When does a consumer attain equilibrium according to indifference curve approach?

Give meaning of demand.

Name two determinants of demand.

List the factors that cause changes in demand.

What is law of demand?

What is demand schedule?

Mock Test Series

NCERT Sample Papers

Entrance Exams Preparation

Suppose a consumer wants to consume two goods which are available only in integer units. The two goods are equally priced and the consumer income is र 40.
Write down all the bundles that are available to the consumer.
Among the available bundles, identify those which cost her exactly र 40.