Post Utme Covenant University 2023 Commerce Question 24

Practice objective / multiple choice question 24 from the 2023 Post Utme Covenant University Commerce examination.

Post Utme Covenant University 2023 Commerce Objective / Multiple Choice
Question 24 POST_UTME_COVENANT_UNIVERSITY • 2023 • COMMERCE • objective

A consumer has a utility function u(x,y) = 2x + 3y, where x and y are the quantities of two goods. If the consumer's budget constraint is 100, and the prices of the two goods are 5 and 10, respectively, what is the consumer's optimal bundle?

Answer Options

A. 10 units of good 1 and 20 units of good 2
Correct Answer B. 20 units of good 1 and 10 units of good 2
C. 30 units of good 1 and 5 units of good 2
D. 40 units of good 1 and 0 units of good 2
Correct Answer
B
Correct Option:
20 units of good 1 and 10 units of good 2

About This Question

This is Post Utme Covenant University 2023 Commerce Question 24. It is one of the objective questions from the 2023 Post Utme Covenant University Commerce examination.

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