Question

Suppose good X and good Y are perfect complements to each other. The kinks of indifference curves are along the y=2x straight line. The consumer has a wealth level of 12. The price of good X is $2 and the price of good Y is $1. What is the consumer's utility maximization market basket?

Answer 1

D. 3 Unit of goods x and 6 unit of good y

Step-by-step explanation:

Option include as attached.

We have y = 2x

And budget constraint equation

PxX + PyP = M

2X + 1Y = 12

Now put y = 2x

2X + 2X = 12

4X = 12

X = 3

Y = 2X

Y = 2(3)

Y = 6