(a) What is a budget line ? What does the point on it indicate in terms of prices? (b) A consumer consumes x and y. Her money income is Rs.24 and the prices of x and y are Rs.4 and Rs.2 respectively. Answer the following questions: (i) Can the consumer afford a bundle 4x and 5y? (ii) What will be MES_(xy),when the consumer is in equilibrium ? Explain.

(a) What is a budget line ? What does the point on it indicate in term

1.	(a) What is a budget line ? What does the point on it indicate in terms of prices? (b) A consumer consumes x and y. Her money income is Rs.24 and the prices of x and y are Rs.4 and Rs.2 respectively. Answer the following questions: (i) Can the consumer afford a bundle 4x and 5y? (ii) What will be MES_(xy),when the consumer is in equilibrium ? Explain.
Answer» Answer :(i)No, 26 > 24 (II) 2 UNITS