Use the Following to Answer Question

question 26

Multiple Choice

Use the following to answer question:
-(Table: Consumer Equilibrium) Use Table: Consumer Equilibrium.Assume that the price of good X is $5 per unit,that the price of good Y is $1 per unit,and that you have $10 to spend on both goods.To maximize utility,you would consume _____ unit(s) of X and _____ unit(s) of Y.

• A)0;1
• B)1;5
• C)4;6
• D)5;5

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Definitions:

Excise Tax

A tax charged on specific goods, such as tobacco and alcohol, usually to discourage their use and generate revenue.

Pumpkins

Fruits from the squash family, typically round with a smooth, slightly ribbed skin, and deep yellow to orange color, often associated with Halloween and autumn.

Cigarette Taxes

A tax levied on cigarettes to increase their price and decrease their consumption for health policy reasons.

Demand for Cigarettes

refers to the total quantity of cigarettes that consumers are willing and able to purchase at a given price level over a specific period of time.