Post Utme Al Hikmah University 2018 Commerce Question 29

Practice objective / multiple choice question 29 from the 2018 Post Utme Al Hikmah University Commerce examination.

Post Utme Al Hikmah University 2018 Commerce Objective / Multiple Choice
Question 29 POST_UTME_AL-HIKMAH_UNIVERSITY • 2018 • COMMERCE • objective
Post Utme Al Hikmah University 2018 Commerce Question 29 diagram

A consumer's utility function is given by u(x, y) = xy. If the consumer's initial endowment is (x0, y0) = (10, 20), and the price of good x is ₦5, what is the consumer's optimal bundle?

Answer Options

A. ₦30, 10 units of x and 20 units of y
Correct Answer B. ₦40, 15 units of x and 30 units of y
C. ₦50, 20 units of x and 40 units of y
D. ₦60, 25 units of x and 50 units of y
Correct Answer
B
Correct Option:
₦40, 15 units of x and 30 units of y

About This Question

This is Post Utme Al Hikmah University 2018 Commerce Question 29. It is one of the objective questions from the 2018 Post Utme Al Hikmah University Commerce examination.

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