Post Utme Afe Babalola University 2024 Commerce Question 18
Practice objective / multiple choice question 18 from the 2024 Post Utme Afe Babalola University Commerce examination.
A consumer has a budget of ₦1000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300 respectively. The consumer's indifference curves are given by the equation U = 2x^0.5y^0.5, where U is utility, x is the quantity of good A and y is the quantity of good B. If the consumer is initially at point (2, 2), what is the new point on the indifference curve that the consumer will move to after a price increase of 20%?
Answer Options
About This Question
This is Post Utme Afe Babalola University 2024 Commerce Question 18. It is one of the objective questions from the 2024 Post Utme Afe Babalola University Commerce examination.
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.