If Px is price of x and Py is price of y and M amount of income, then the point K in diagram is shown by
Point K lies strictly inside the budget triangle in the diagram. With positive prices, its expenditure satisfies Px · x + Py · y < M, leaving part of income unspent.
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If Px is price of x and Py is price of y and M amount of income, then the point K in diagram is shown by
Answer and explanation
Correct answer C
Point K lies strictly inside the budget triangle in the diagram. With positive prices, its expenditure satisfies Px · x + Py · y < M, leaving part of income unspent.
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RPSC School Lecturer (Sanskrit Education)