A consumer wants to consumer two goods, the price of Bananas is Rs. 4, and the price of Mangoes is Rs. 5. The consumer income is Rs. 20.
(a) How much Bananas can she consumes if she spend her entire income on that good ?
(b) How much Mangoes can she consumes if she spend her entire income on that good ?
(c) Is the slope of budget line downward or upward ?
(d) Are the bundles on the budget line equal to the consumer’s income or not ?
(e) If you want to have more of Banana you have to give up Mangoes. Is it true ?
