Suppose a consumer can afford to buy 6 units of good 1 and 8 units of good 2, if she spends her entire income. The prices of two goods are Rs.6 and Rs.8 respectively. What is the consumer's income ?

Suppose a consumer can afford to buy 6 units of good 1 and 8 units of

1.	Suppose a consumer can afford to buy 6 units of good 1 and 8 units of good 2, if she spends her entire income. The prices of two goods are Rs.6 and Rs.8 respectively. What is the consumer's income ?
Answer» <html><body><p><br/></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/equation-974081" style="font-weight:bold;" target="_blank" title="Click to know more about EQUATION">EQUATION</a> of budget <a href="https://interviewquestions.tuteehub.com/tag/line-1074199" style="font-weight:bold;" target="_blank" title="Click to know more about LINE">LINE</a> =`P_1x_1+P_2x_2=M` <br/> Here `P_1=Rs.6, P_2=Rs.<a href="https://interviewquestions.tuteehub.com/tag/8-336412" style="font-weight:bold;" target="_blank" title="Click to know more about 8">8</a>, x_1=` 6 units, `x_2`=8 units <br/> <a href="https://interviewquestions.tuteehub.com/tag/hence-484344" style="font-weight:bold;" target="_blank" title="Click to know more about HENCE">HENCE</a> `P_1x_1+P_2x_2=6xx6+8xx8` <br/> Total expenditure=36+64=100 <br/> Hence, total <a href="https://interviewquestions.tuteehub.com/tag/income-25499" style="font-weight:bold;" target="_blank" title="Click to know more about INCOME">INCOME</a> (M) of the consumer is <br/> Rs.100 as `P_1x_1+P_2x_2=M`</body></html>