Answer to Question #140574 in Microeconomics for Lu

Question

A consumer has budgeted a total of $225 to spend on two goods, X and
Y. She likes to consume a unit of good X in combination with good Y. Any unit of X she cannot consume with Y is useless. Similarly, any unit of good Y she cannot consume with good X is useless. The price of a unit of good X is $5, and the price of a unit of good Y is $10. How many units of each good will the consumer purchase? Briefly explain your reasoning.

Answer 1

Solution

According to question goods are perfect complements

So

$X=Y$

So

$P_xX+P_yY=income$

So

5X+10Y=225

And

5X+10x=225

15X=225

X=15

And Y=15