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A consumer has Rs 20 and both goods cost Rs 5 each. Which bundle can she not afford?
A(4, 0)
B(2, 2)
C(1, 3)
D(3, 3)
Answer & Solution
Correct answer: D. (3, 3)
Bundle (3, 3) costs 6 x 5 = Rs 30, which is above her Rs 20 income.
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