What is the maximum amount of good X that can be purchased if X and Y are the only two goods available for purchase and P_x = $10,P_y = $20,Y = 0,and M = 400? A) 0 B) 20 C) 40 D) 30

Question

Quizplus · Accepted Answer

Using the budget constraint equation: 
M = P1S1U1B0 + P2S1U1B0 
Substitute in the given values: 
400 = 10x + 20(0) 
Solve for x: 
x = 40

Therefore, the maximum amount of good X that can be purchased is 40.

What Is the Maximum Amount of Good X That Can