Suppose a consumer can afford to buy 6 units of Good-1 and 8 units of Good-2, if she spends her entire income. The prices of the two goods are Rs 6 and Rs 8 respectively. How much is the consumer's income?

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Solution

Given, quantity of Good-1 = 6 units
Quantity of Good-2 = 8 units
Price of Good-1 = Rs 6
Price of Good-2 = Rs 8
We know that,
$P_{1} X_{1} + P_{2} X_{2} = Y \Rightarrow 6 \times 6 + 8 \times 8 = Y$
$36 + 64 = Y \Rightarrow 100 = Y$
Thus, consumer's income is Rs 100.

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Suppose a consumer can afford to buy 6 units of Good-1 and 8 units of Good-2, if she spends her entire income. The prices of the two goods are Rs 6 and Rs 8 respectively. How much is the consumer's income?

Given, quantity of Good-1 = 6 unitsQuantity of Good-2 = 8 unitsPrice of Good-1 = Rs 6Price of Good-2 = Rs 8We know that,P1X1+P2X2=Y⇒6×6+8×8=Y36+64=Y⇒100=YThus, consumer's income is Rs 100.

Given, quantity of Good-1 = 6 units
Quantity of Good-2 = 8 units
Price of Good-1 = Rs 6
Price of Good-2 = Rs 8
We know that,
$P_{1} X_{1} + P_{2} X_{2} = Y \Rightarrow 6 \times 6 + 8 \times 8 = Y$
$36 + 64 = Y \Rightarrow 100 = Y$
Thus, consumer's income is Rs 100.