Final answer:
To determine which combinations lie on the budget constraint, we divide the consumer's income by the price of each good. Combination 2 (3 units of X and 4 units of Y) and combination 4 (2 units of X and 5 units of Y) lie on the budget constraint.
Step-by-step explanation:
The consumer has an income of $15, and they spend it on two goods, X and Y. The price of good X is $1.00 and the price of good Y is $3.00. To determine which combinations lie on the individual's budget constraint, we need to find the affordable combinations of X and Y. We can do this by dividing the consumer's income by the price of each good.
For combination 1, 5 units of X and 2 units of Y, the total cost would be 5 * $1.00 + 2 * $3.00 = $11.00, which is greater than the consumer's income of $15. Therefore, combination 1 does not lie on the budget constraint.
Similarly, for combinations 2, 3 units of X and 4 units of Y, the total cost would be 3 * $1.00 + 4 * $3.00 = $15.00, which is equal to the consumer's income. So, combination 2 does lie on the budget constraint.
Using the same calculations for combinations 3 and 4, we find that combination 3 does not lie on the budget constraint, while combination 4 does lie on the budget constraint.