00:01
In this question, the motive is to find out which statement is correct and we can write the given information which is the price of good x, so this will be equals to $60 and then the price of good y will be equals to $30.
00:19
And here the weekly income of raff a is denoted by i, so this will be here $180.
00:26
Dollars.
00:28
Therefore, if we check the first statement, then we can write.
00:32
So firstly it is better if we write the budget constraint.
00:36
And the budget constraint will be p of x.
00:40
Now it is multiplied with q of x, then it will be here plus p of y multiplied with q of y.
00:48
And this is equals to i.
00:50
So this is the budget constraint.
00:52
And if we plug in the value here, then it will be p of x is what.
00:56
It is 60 multiplied with q of x plus it will be 30 and then it is multiplied with q of y and that is 180.
01:07
So in the first part if we want to check if he can afford 6 units of good y, that is the value of qy will be equals to 6.
01:18
So if we plug in this value in the budget constraint then it will be 60 multiplied with q of x and and then it is plus 30 times 6 and that is equals to 180.
01:32
So the value of q of x, that is quantity of x, will be here 0.
01:38
It means that he can afford 6 units of y only if he doesn't buy any of good x...