Use the Table Below to Answer the Following Question

question 16

Multiple Choice

Use the table below to answer the following question.
Table 8.2.4

-Refer to Table 8.2.4.Suppose the price of X is $1 and the price of Y is $1.How much of each should you purchase to maximize utility from a total expenditure of $11?

• A)3 units of X and 8 units of Y
• B)4 units of X and 7 units of Y
• C)5 units of X and 6 units of Y
• D)6 units of X and 5 units of Y
• E)7 units of X and 4 units of Y

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Definitions:

Inflation Rate

The pace at which the aggregate price level of commodities and services ascends, reducing the value of money.

Depreciate

A decrease in the value of an asset over time, often due to wear and tear or obsolescence, recognized in accounting to spread the cost of an asset over its useful life.

Canadian Dollar

The official currency of Canada, represented by the symbol CAD or C$.

Absolute Purchasing Power Parity

The theory that, in the absence of transaction costs and other barriers, identical goods in different countries should have the same price when expressed in a common currency.