The below figure shows the various combinations of the goods X and Y that yield different levels of utility. Figure 6.3
- In Figure 6.3,if the price of one unit of good X and good Y is $30 and $20,respectively,the consumer's income is _____.
A)$50
B)$150
C)$400
D)$600
E)$900

Question

The below figure shows the various combinations of the goods X and Y that yield different levels of utility. Figure 6.3 
- In Figure 6.3,if the price of one unit of good X and good Y is $30 and $20,respectively,the consumer's income is _____.
A)$50 
B)$150 
C)$400 
D)$600 
E)$900

Quizplus · Accepted Answer

The consumer's income is calculated by multiplying the price of each good by the quantity consumed and summing them up. Without specific quantities, we assume the income allows for a combination of goods X and Y. Given the options, $600 is a reasonable income to allow for multiple units of both goods.

The Below Figure Shows the Various Combinations of the Goods