consumer prefers to consume 1 unit of x with each unit of y. if the price of x is $12 and the price of y is $4 , and he has income of $120, what is the optimal pair (x*,y*) to consume? a. (12,12) b. (20,20) c. (22,22) d. (40,40)

consumer prefers to consume 1 unit of x with each unit of y. if the price of x is $12 and the price of y is $4 , and he has income of $120, what is the optimal pair (x,y) to consume? a. (12,12) b. (20,20) c. (22,22) d. (40,40)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A consumer prefers to consume 1 unit of x with each unit of y. if the price of x is $12 and the price of y is $4 , and he has income of $120, what is the optimal pair (x*,y*) to consume?

a. (12,12)

b. (20,20)

c. (22,22)

d. (40,40)

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