7. (a) What is a budget line? What does the point on it indicate in terms of prices?(b) A consumer consumes only two goods X and Y. Her money income is 24 and the prices of Goods Xand Y are *4 and 2 respectively. Answer the following questions:(i) Can the consumer afford a bundle 4X and 5Y? Explain.(ii) What will be the MRS, when consumer is in equilibrium? Explain.XY

Examining the budget constraint for a household with clothing on the vertical axis and food on the horizontal axis, the vertical intercept of the budget line represents:Multiple choice question.the price of food.the quantity of clothing purchased if all income is spent on clothing.the quantity of food purchased if all income is spent on food.the price of clothing.

Consumers must forgo certain goods and services based on a limited budget because Blank______.Multiple choice question.a consumer's limited budget is constrained by the resources used to produce goods or servicesa consumer's limited budget is constrained by the availability of goods or servicesa consumer's limited budget is constrained by the demand for goods or servicesa consumer spends his or her limited budget purchasing a combination of goods and services that maximize his or her satisfaction

A consumer’s budget line depictsSelected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.athe utility that an individual would receive from consuming various combinations of two goodsbthe combinations of goods that a person can afford at given prices and incomechow changes in income affect utility for given pricesdthe combinations of goods where marginal utility divided by price is the same for all goods

What does a consumer's budget constraint represent? The consumer's income The consumer's preferred consumption bundles The consumer's feasible consumption bundles The consumer's optimal consumption bundle

A consumer has income equal to $1,000, to spend on two goods, X and Y, where price of good X is $20 per unit, and price of good Y is $50 per unit. The X-intercept of the consumer's budget constraint has __ units and the Y-intercept of the consumer's budget constraint has __ units.