Figure 21-16 -Refer to Figure 21-16. the Price of X Is $20

question 94

Multiple Choice

Figure 21-16
-Refer to Figure 21-16. The price of X is $20, the price of Y is $5, and the consumer's income is $40. Which point represents the consumer's optimal choice?

• A)A
• B)B
• C)C

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Definitions:

Selling Price

The amount for which something is sold; the price that a buyer pays.

Retail Price

The price at which goods or services are sold to the end consumer, inclusive of any markup from wholesalers or distributors.

Mark-up on Cost

The percentage added to the cost of goods to cover overhead and profit; the difference between the cost of a product and its selling price.

Operating Expenses

The day-to-day expenses involved in running a business, such as rent, utilities, and payroll, crucial for maintaining operations.