Question

1. A consumer wants to consume two goods. The Price of bananas is Rs. 4 and price of mangoes is Rs. 5. The consumer income is Rs. 20. (a) How much bananas can she consume if she spend her entire income on that good?
(b) How much mangoes can she consume if she spend her entire income on that good?
(c) Is the slope of budget line is downward or upward?
(d) Are the bundles on the budget line equal to the consumers' income or not?
(e) If you want to have more of banana you have to give up mangoes.
pls guys correct answer (◠‿◕)(ʘᴗʘ✿)(◠‿◕)​

Answer 1

Price of banana (Pb)= 4

Price of mangoes(Pm)= 5

Income= 20

Combination   B     M

      1                 0    4

      2                5    0

a. 5 bananas can be consumed if entire income is spent on it.

b. 4 mangoes can be consumed if she spends her entire income on that.

c. Downward

d. they are equal to consumer's income.

e. True