Question

A consumer has an income of $320 and the price of x is $5, while the price of good y is $12. In this case, if the consumer only purchases good x, she can buy _____ units, but instead, if she only buys good y, then she can afford to buy _____ units.

Answer 1

Answer:

If the consumer only purchases good x, she can buy 64 units, but instead, if she only buys good y, then she can afford to buy 26.67 units.

Explanation:

Given:

Income of the consumer = $320

Price of x = $5

Price of y = $12

Therefore, we have:

Units obtainable by purchasing x only = Income of the consumer / Price of x = $320 / $5 = 64

Unnits obtainable by purchasing y only = Income of the consumer / Price of y = $320 / $12 = 26.67

Therefore, if the consumer only purchases good x, she can buy 64 units, but instead, if she only buys good y, then she can afford to buy 26.67 units.