The consumer buys 8 units of good 2. Here's why: 1. The consumer has an income of $60. 2. She buys 4 units of good 1 at a price of $5 per unit, which costs her $20. 3. This leaves her with $40 to spend on good 2. 4. The price

Consider a consumer who can buy good 1 or 2. The price of good 1 is $5 and the price for good 2 is $4. The consumer has income of 60. If the consumer buys 4 units of good 1 and consumes on their budget constraint, how many units of good 2 does she buy?Group of answer choices681012none of the above

Question

Consider a consumer who can buy good 1 or 2. The price of good 1 is $5 and the price for good 2 is$ 4. The consumer has income of 60. If the consumer buys 4 units of good 1 and consumes on their budget constraint, how many units of good 2 does she buy?Group of answer choices681012none of the above

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Solution 1

The consumer buys 8 units of good 2.

Here's why:

The consumer has an income of $60.
She buys 4 units of good 1 at a price of $5 per unit, which costs her$ 20.
This leaves her with $40 to spend on good 2.
The price

Solution 2

Let's break this down:

The consumer has an income of $60.
The price of good 1 is $5 and the consumer buys 4 units. So, she spends$ 5 * 4 = $20 on good 1.
Subtract the amount spent on good 1 from the total income to find out how much is left for good 2. $60 -$ 20 = $40.
The price of good 2 is $4. To find out how many units of good 2 the consumer can buy, divide the remaining income by the price of good 2.$ 40 / $4 = 10 units.

So, the consumer buys 10 units of good 2. The correct answer is 10.

This problem has been solved

Solution 3

The consumer buys 8 units of good 2.

Here's why:

The consumer has an income of $60.
She buys 4 units of good 1 at a price of $5 per unit, which costs her$ 20.
This leaves her with $40 to spend on good 2.
The price of good 2 is $4 per unit. So, with her remaining$ 40, she can buy 10 units of good 2.

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