The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3

-In Figure 7.3, if the price of one unit of good X and one unit of 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 7.3
 
-In Figure 7.3, if the price of one unit of good X and one unit of 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 determined by the budget constraint, which is the total amount they can spend on goods X and Y. If the consumer can purchase a combination of goods X and Y that costs $600, then their income must be $600.

The Below Figure Shows the Various Combinations of the Goods