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A consumer’s income or budget is 120. She buys two goods, x and y, with prices 3 and 4respectively. Then the budget constraint can be expressed as

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Question:

A consumer’s income or budget is 120. She buys two goods, x and y, with prices 3 and 4respectively. Then the budget constraint can be expressed as

A.

4x + 3y = 120

B.

3x + 4y = 120

C.

12x + 12y = 120

D.

cannot be determined

Answer» b. 3x + 4y = 120

Note: The above multiple-choice question is for all general and Competitive Exams in India.