A consumer has an income of $100, and the price of X is $2, while the price of Y is $4. If the consumer buys 20 units of X, then the maximum quantity of Y that she could also buy is
A)15
B)25
C)40
D)10

Question

Quizplus · Accepted Answer

The consumer has $100 to spend. If she buys 20 units of X, she will spend 20 * $2 = $40. This leaves her with $60 to spend on Y. Since each unit of Y costs $4, she can buy a maximum of 60 / 4 = 15 units of Y.

A Consumer Has an Income of $100, and the Price