Answer to Question #224437 in Microeconomics for aneeza

Question

a.                  Pencils cost Rs.2 each, and notebooks cost Rs.3 each. Fatima has income of Rs.60. She is considering a consumption bundle containing pencils and 10 notebooks.

b.                  Pencils cost Rs.2 each, and notebooks cost Rs.5 each. Fatima has income of Rs.110. She is considering a consumption bundle containing 2() pencils and 10 notebooks.

Pencils cost Rs.3 each, and notebooks cost Rs.lO each. Fatima has income of Rs.50. She is considering a consumption bundle containing 10 pencils and 3 notebooks

Answer 1

a. Let number of pencils purchased be equal to $x$

$2x+30=60$

$x=15$

b. Total cost of pencils = 4

Total cost of notebooks = 50

Money saved = $110-54=56$

c. Total cost of pencils = 30

Total cost of notebooks = 30

Total cost = 60

Income = 50

She cannot buy as she does not have enough income