The Consumer Faces a Budget Constraint Because the Market Price

question 26

Multiple Choice

The consumer faces a budget constraint because the market price of X is $3,the market price of Y is $3,and the consumer's budget is $90.How many units of X and Y would be purchased?

• A)0 units of X,0 units of Y.
• B)10 units of X,20 units of Y.
• C)20 units of X,20 units of Y.
• D)30 units of X,30 units of Y.

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Definitions:

Special Order

A one-time customer order typically at a reduced sale price, which does not disrupt regular production or sales activities.

Constrained Resource

A critical resource within a process or system that has a capacity limit potentially affecting overall performance or output.

Profitable Product

A product that generates more revenue than the costs involved in its production, marketing, and distribution.

Variable Selling Expense

Costs that vary directly with the volume of sales, including commissions and shipping fees.