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Suppose the price of X is 10, the price of Y is 1, and your income...

Suppose the price of X is 10, the price of Y is 1, and your income is 60. Without specifying a utility function, which of the following bundles cannot be the optimal bundle?

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Answer #1

As Price of X = 10

Price of Y = 1

Income = 60

As we know that the  budget line is PX X + PYY = M , this represents the consumers budget line , putting values we get 10 X + Y = 60 , So consumer have this amount of income , he/she cannot consume beyong this income levels . So any points that lies outside the budget line are unattainable points . Points which lies inside the budget line or on the budget line are attainable points . So bundles which are unattainable , they cannot be unoptimal bundles .

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