Post Utme Afe Babalola University 2024 Commerce Question 20
Practice objective / multiple choice question 20 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%?
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This is Post Utme Afe Babalola University 2024 Commerce Question 20. It is one of the objective questions from the 2024 Post Utme Afe Babalola University Commerce examination.
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