# Suppose a consumer's utility function is U(X, Y) = X + 2Y. The consumer has $8 to spend (M = $8)....

## Question:

Suppose a consumer's utility function is U(X, Y) = X + 2Y. The consumer has $8 to spend (M = $8). The price of good Y is PY = $2. Fill in the table below which gives price/quantity combinations on the Demand Curve for Good X:

Px | X |
---|---|

1/4 | |

1/2 | |

2 | |

4 |

## Budget Line:

The budget line shows the available resource for any consumer. Thus, it represents the limit of the consumption of any commodity. It is on the consumer how to use this available income for the consumption process.

## Answer and Explanation: 1

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View this answerAt each price of X, given the income, how much of only X can be bought is calculated below:

{eq}\begin{align*} M &= 8\\ X &=...

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Chapter 3 / Lesson 11In economics, the rate of transformation model can be used to visualize the concept of budget constraints. Learn more about budget constraints, budgets lines, the rate of transformation curve, and how to maximize the utility of the concepts.

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