Post Utme Pan Atlantic University 2023 Economics Question 28

Practice objective / multiple choice question 28 from the 2023 Post Utme Pan Atlantic University Economics examination.

Post Utme Pan Atlantic University 2023 Economics Objective / Multiple Choice
Question 28 POST_UTME_PAN-ATLANTIC_UNIVERSITY • 2023 • ECONOMICS • objective

A consumer is faced with the following utility function: U(x, y) = 2x + 3y. The prices of x and y are ₦5 and ₦10, respectively. U\sing the concept of budget constraint, explain why the consumer may not be able to maximize utility.

Answer Options

A. The budget constraint is not binding, and the consumer can afford to consume more of both goods.
Correct Answer B. The budget constraint is binding, and the consumer can only afford to consume one good.
C. The budget constraint is not binding, and the consumer can only afford to consume one good.
D. The budget constraint is binding, and the consumer can afford to consume more of both goods.
Correct Answer
B
Correct Option:
The budget constraint is binding, and the consumer can only afford to consume one good.

About This Question

This is Post Utme Pan Atlantic University 2023 Economics Question 28. It is one of the objective questions from the 2023 Post Utme Pan Atlantic University Economics examination.

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