An hypothetical consumer is faced with the budget constraint specified as Y=3A + 4B, where Y= money income, A= quantity of commodity A and B is the quantity of commodity B consumed ( price of A and B in #). (A) from the budget constraint; state: (I) the price of commodity A (ii) the price of commodity B (B) given that the money income Y= #1,200 (I) sketch the budget line with commodity A on the horizontal axis and commodity B on the vertical axis ; (ii) Determine the quantity of A if 60 units of B is consumed. (iii) Determine the amount of money income unspent if 100 units of A and 80 units of B are consumed. (iv) determine the extra amount of money the consumer will need to purchase 250 units of each commodity

/in /by

An hypothetical consumer is faced with the budget constraint specified
as Y=3A + 4B, where Y= money income, A= quantity of commodity A and B
is the quantity of commodity B consumed ( price of A and B in #).

(A) from the budget constraint; state:

(I) the price of commodity A

(ii) the price of commodity B

(B) given that the money income Y= #1,200

(I) sketch the budget line with commodity A on the horizontal axis and
commodity B on the vertical axis ;

(ii) Determine the quantity of A if 60 units of B is consumed.

(iii) Determine the amount of money income unspent if 100 units of A
and 80 units of B are consumed.

(iv) determine the extra amount of money the consumer will need to
purchase 250 units of each commodity

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