Suppose the income of the consumer is M, which is equal to Rs. 20 and the prices of bananas (x1) and mangoes (x2) are p1 and p2
(both prices are equal to Rs. 5 per unit) respectively. The bundles
of products available to the consumer are: (0,0), (0,1), (0,2), (0,3),
(0,4), (1,0), (1,1), (1,2), (1,3), (1,4), (2,0), (2,1), (2,2), (2,3), (2,4),
(3,0), (3,1), (3,2), (3,3), (3,4). The consumer can choose any
bundles as long as they cost less than or equal to the income.
(4) Write the equation of a budget line.
(5) Among these select the bundles which cost exactly equal to the
income of the consumer?
(6) If the consumer wants to select the bundle (3,3), how much more
income is required to buy this combination?