Post Utme Veritas University 2018 Economics Question 33

Practice objective / multiple choice question 33 from the 2018 Post Utme Veritas University Economics examination.

Post Utme Veritas University 2018 Economics Objective / Multiple Choice
Question 33 POST_UTME_VERITAS_UNIVERSITY • 2018 • ECONOMICS • objective

A consumer has a utility function U(x, y) = 2x + 3y, where x is the quantity of good x consumed and y is the quantity of good y consumed. The prices of good x and good y are ₦10 and ₦20 respectively. Find the consumer's budget constraint and the optimal quantities of good x and good y to consume.

Answer Options

A. Budget constraint: 10x + 20y = 100, Optimal quantities: x = 5, y = 2
Correct Answer B. Budget constraint: 10x + 20y = 120, Optimal quantities: x = 6, y = 3
C. Budget constraint: 10x + 20y = 140, Optimal quantities: x = 7, y = 4
D. Budget constraint: 10x + 20y = 160, Optimal quantities: x = 8, y = 5
Correct Answer
B
Correct Option:
Budget constraint: 10x + 20y = 120, Optimal quantities: x = 6, y = 3

About This Question

This is Post Utme Veritas University 2018 Economics Question 33. It is one of the objective questions from the 2018 Post Utme Veritas University Economics examination.

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