-Refer to the above table. If the price of Good A is $2, the price of Good B is $2, and the consumer has $14, the rational consumer will purchase
A) 3 units of Good A and 4 units of Good B.
B) 6 units of Good A and 6 units of Good B.
C) 6 units of Good A and 0 units of Good B.
D) 3 units of Good A and 3 units of Good B.

Question

-Refer to the above table. If the price of Good A is $2, the price of Good B is $2, and the consumer has $14, the rational consumer will purchase
A) 3 units of Good A and 4 units of Good B. 
B) 6 units of Good A and 6 units of Good B. 
C) 6 units of Good A and 0 units of Good B. 
D) 3 units of Good A and 3 units of Good B.

Quizplus · Accepted Answer

Given the budget of $14 and the prices of both goods being $2, the consumer can purchase a total of 7 units of goods (since $14/$2 = 7). Option A, with 3 units of Good A and 4 units of Good B, totals 7 units, fitting the budget constraint.

-Refer to the Above Table