Re: dse 2009

Posted by Amit Goyal on Jun 29, 2011; 1:40am
URL: http://discussion-forum.276.s1.nabble.com/dse-2009-tp6525041p6527319.html

Let p(x) denotes price of x, p(y) denotes price of y and M denotes Income.
4p(x) + 6p(y) = M
12p(x) + 2p(y) = M
Solve for p(x) and p(y)
p(x) = M/16
p(y) = M/8
Now we can write the budget constraint:
xp(x) + yp(y) = M
as
x(M/16) + y(M/8) = M

Put y = 0 in above and you will get x = 16.