Assume that the unit price of good A is $2, and the unit price of good B is $5. If an individual has income of $30, which consumption bundles of (good A, good B) is on the edge of the budget constraint?
A) (5,5)
B) (5,4)
C) (6,4)
D) (6,5)

Question

Quizplus · Accepted Answer

The budget constraint is given by 2A + 5B = 30. For option B, 2(5) + 5(4) = 10 + 20 = 30, which satisfies the budget constraint.

Assume That the Unit Price of Good a Is $2