Let Y = $100, QX = Quantity of Good X

question 60

Multiple Choice

Let Y = $100, QX = quantity of good X, and QW = quantity of good W, PX = $4 and PW = $5. The budget equation is

• A)100 = 4QX + 5QW.
• B)100 = QX + (4/5)QW.
• C)QX = 100 + (4/5)QW.
• D)QX = QW + (4/5)Y.
• E)QW = QX + (4/5)Y.

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Definitions:

Net Markdowns

The reduction in the selling price of goods, subtracted from the original or previous selling price, often to clear surplus inventory.

Understated

Describes an amount reported lower than it actually is, either in financial statements or any other reporting context.