a-consumers-income-increases-from-40-to-60-and-the-prices-of-goods-a-and-b-are-4

Question

A consumer's income increases from $40 to $60, and the prices of goods A and B are $4 and $5 respectively. If the initial optimum consumption was 5 units of A and 4 units of B, what is the new optimum consumption point assuming the consumer's preferences remain unchanged?

Accepted Answer

7 units of A and 6 units of B

Answer

5 units of A and 7 units of B

Answer

6 units of A and 5 units of B

Answer

8 units of A and 4 units of B

A consumer's income increases from \$40 to \$60, and the prices of goods A and B are \$4 and \$5 respectively. If the initial optimum consumption was 5 units of A and 4 units of B, what is the new optimum consumption point assuming the consumer's preferences remain unchanged?