Economics (AS & A Level) · May / June 2024 · Paper 32 · Question 2

A consumer has $100 to spend on two products, X and Y. The budget line shows the different possible combinations of products X and Y that can be purchased when all the consumer's income is spent. [budget line graph: product X on vertical axis with intercept 10, product Y on horizontal axis with intercept 20] If the price of product Y increases to $10, what will be the maximum number of units of product X and product Y that the consumer can now purchase?

1. Aproduct X 5, product Y 10
2. Bproduct X 5, product Y 20
3. Cproduct X 10, product Y 10
4. Dproduct X 20, product Y 10

As printed in the paper