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Managerial Economics · Quiz 2 · 16 Aug 2026 · May 2026 term

Question 28: Suppose the consumer's income is \100, and the price of …

Question 28

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A consumer purchases two goods, food and clothing. He has the utility function U(x,y) = xy + 10x, where x denotes the amount of food consumed and y the amount of clothing. Based on the above data, answer the given subquestions.

Suppose the consumer's income is $100, and the price of food is $1 and clothing is $2.
What is the utility of the optimal bundle? ________

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Correct answer: 1800

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Question 28 of 28 in the IIT Madras BS Managerial Economics (Managerial Economics) Quiz 2 paper sat on 16 Aug 2026, in the May 2026 term (Managerial Economics 16 Aug 26). It carries 1 mark.

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