The Following Diagram Shows a Budget Constraint for a Particular

question 541

Multiple Choice

The following diagram shows a budget constraint for a particular consumer. If the price of X is $20, then what is the price of Y?

• A)$15
• B)$25
• C)$35
• D)$70

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Definitions:

Balance

The total amount of funds in an account or the difference between the total debits and credits in an account.

Account

A record summarizing all the transactions pertaining to a single thing in the accounting world, such as a specific person, a business entity, or a specific asset.

Collection Float

The time period between when a check is deposited into a bank account and when the amount is made available.

Cheques

Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer or a specified person.