What is the maximum amount of good Y that can be purchased if X and Y are the only two goods available for purchase and P_x = $10,P_y = $20,X = 20,and M = 400? A) 10 B) 20 C) 5 D) 0

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Quizplus · Accepted Answer

The maximum amount of good Y that can be purchased is 10. This is because the budget constraint is M = P_xX + P_yY, which in this case is 400 = 10(20) + 20Y. Solving for Y, we get Y = 10.

What Is the Maximum Amount of Good Y That Can