Post Utme Rsu 2020 Commerce Question 27

Practice objective / multiple choice question 27 from the 2020 Post Utme Rsu Commerce examination.

Post Utme Rsu 2020 Commerce Objective / Multiple Choice

Question 27 POST_UTME_RSU • 2020 • COMMERCE • objective

A consumer's budget constraint is given by P_x x + P_y y = I, where P_x and P_y are the prices of goods x and y respectively, and I is income. If the price of good x increases by 10% and the price of good y decreases by 5%, what is the new budget constraint?

A. P_x x + 0.95 P_y y = I

Correct Answer B. 1.1 P_x x + 0.95 P_y y = I

C. 1.1 P_x x + 0.9 P_y y = I

D. 1.1 P_x x + 0.95 P_y y = 1.05 I

Correct Answer

Correct Option:

1.1 P_x x + 0.95 P_y y = I

This is Post Utme Rsu 2020 Commerce Question 27. It is one of the objective questions from the 2020 Post Utme Rsu Commerce examination.

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