Answer to Question #114172 in Microeconomics for Junaid

Question

at prices of rs 6 for a dvd and rs 4 for a coke bottle mike can afford to buy 6 dvds and 8 cokes with income 1 if mike is maximizing his utility at this bundle what is his income?

Answer 1

Buget for this consumer is

$6d+4c=I$

Where d is dvd

c is coke

I is income

If he consumes 6 dvds and 8cokes the income is

$(6×6)+(8×4)=68$