Exhibit 20-6 ​

question 86

Multiple Choice

Exhibit 20-6
​

-Refer to Exhibit 20-6. I₁, I₂ and I₃ are indifference curves and line ab is the relevant budget constraint. If the consumer is initially at point R, he should

• A)strive for point N by obtaining a larger money income.
• B)purchase more of X and less of Y.
• C)remain at that point in order to maximize utility.
• D)purchase more of Y and less of X.
• E)none of the above

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Definitions:

Supply Policies

Guidelines and rules set by an organization to govern its procurement activities and relationships with suppliers.

Purchasing Consortia

Groups of businesses that come together to aggregate their purchasing volume in order to negotiate better prices and terms from suppliers.

Confidentiality

The requirement to keep certain information private, not disclosing it to unauthorized individuals or parties.

Supply Strategy

A plan for managing the procurement of goods and services to meet organizational needs effectively.