There are 3 goods. The price of good 1 is -1, the price of good 2 is +1, and the price of good 3 is +2. It is physically possible for a consumer to consume any commodity bundle with nonnegative amounts of each good. A consumer who has an income of 10 could afford to consume some commodity bundles that include 5 units of good 1 and 6 units of good 2.

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Since the consumer has an income of 10, they can afford to spend up to 10 dollars on the three goods. If they were to purchase 5 units of good 1 at a price of -1 each and 6 units of good 2 at a price of +1 each, they would spend (5 x -1) + (6 x 1) = -5 + 6 = 1 dollar. This means they still have 10 - 1 = 9 dollars left in their budget to spend on other goods, including good 3 which is priced at +2. Therefore, it is physically possible for the consumer to consume some commodity bundles that include 5 units of good 1 and 6 units of good 2.

There Are 3 Goods