Suppose a consumer can afford to buy 6 units of good 1 and 8 units of good 2
if she spends her entire income. The prices of the two goods are Rs 6 and Rs 8
respectively. How much is the consumer’s income?
P1=Rs.= 6
P2=Rs. =8
X1=6
X2=8
Budget line = M = P1X1+P2X2
M = 6 × 6 + 8×8
M = 36 ÷ 64
M = 100
Thus, the consumer’s income is Rs 100.
There are three identical firms in a market. The following table shows the supply schedule of firm 1. Compute the market supply schedule.
Price (Rs.) | SS1 (units) |
---|---|
0 1 2 3 4 5 6 7 8 |
0 0 2 4 6 8 10 12 14 |
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Welcome to the NCERT Solutions for Class 12 Micro Economics - Chapter . This page offers a step-by-step solution to the specific question from Excercise 1 , Question 8: Suppose a consumer can afford to buy 6 units of good 1 and 8 units of good 2 if she spends her enti....
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