Suppose that price of Good Y is $2 Question 4 consumer had a budget of $36...

Question

Question

Suppose that price of Good Y is $2 Question 4 consumer had a budget of $36 to spend on Good X and Good Y. The price of Good X

Answer 1

Answer #1

price of x = 4

budget = 36

x intercept = max number of x he can buy

so according to offer we can get 2 units of x for 4 + 2 = 6 dollars

so cost of 1 unit of x effectively is 3

so x intercept = 36/3 = 12 units

if any doubt please let me know anytime

Answer 2

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