The consumer faces a budget constraint because the market price of X is $3,the market price of Y is $3,and the consumer's budget is $90.How many units of X and Y would be purchased?
A)0 units of X,0 units of Y.
B)10 units of X,20 units of Y.
C)20 units of X,20 units of Y.
D)30 units of X,30 units of Y.

Question

Quizplus · Accepted Answer

The consumer's budget constraint is given by:$$3X + 3Y = 90$$Solving for X, we get:$$X = 30 - Y$$Substituting this into the budget constraint, we get:$$3(30 - Y) + 3Y = 90$$Simplifying, we get:$$Y = 20$$Substituting this back into the equation for X, we get:$$X = 10$$Therefore, the consumer would purchase 10 units of X and 20 units of Y.

The Consumer Faces a Budget Constraint Because the Market Price