Goods X and Y

question 6

Multiple Choice

Goods X and Y

For the following questions, assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions.

-Refer to Goods X and Y.If the marginal rate of good X in terms of good Y is large,then the indifference curve will be

• A) convex.
• B) concave.
• C) steep.
• D) flat.

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Definitions:

Purchase Price

The amount of money paid to buy goods or services.

Shipping Cost

Expenses associated with the transportation of goods from one place to another.

Net Sales

Total sales revenue minus returns, allowances for damaged or missing goods, and discounts.

Sales Discounts

Sales discounts are reductions in the price of a product or service offered by a seller to a buyer, usually to encourage prompt payment or bulk purchases.