Figure 21-14
-Refer to Figure 21-14. Suppose the price of good X is $8, the price of good Y is $10, and the consumer's income is $360. Then the consumer's optimal choice is to buy
A)15 units of good X and 24 units of good Y.
B)20 units of good X and 20 units of good Y.
C)30 units of good X and 12 units of good Y.
D)40 units of good X and 4 units of good Y.

Question

Figure 21-14 
-Refer to Figure 21-14. Suppose the price of good X is $8, the price of good Y is $10, and the consumer's income is $360. Then the consumer's optimal choice is to buy
A)15 units of good X and 24 units of good Y. 
B)20 units of good X and 20 units of good Y. 
C)30 units of good X and 12 units of good Y. 
D)40 units of good X and 4 units of good Y.

Quizplus · Accepted Answer

The consumer's budget constraint is $360. The cost of 30 units of good X is $240 (30*$8), and the cost of 12 units of good Y is $120 (12*$10). Together, they sum up to $360, which matches the consumer's income, making it the optimal choice.

Figure 21-14 -Refer to Figure 21-14. Suppose the Price of Good X