Suppose That There Are Two Goods, X and Y

question 11

Multiple Choice

Suppose that there are two goods, X and Y. The utility function is U = XY + 2Y. The price of X is P, and the price of Y is $5. Income is $60. The demand for X as a function of P is X = ____.

• A) (30 - P) / P
• B) (20 - P) / P
• C) (2 - P) / P
• D) 2P

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Definitions:

Indirect Expense

Costs that are not directly linked to a specific product, service, or cost object and often relate to the general operation of a business.

Investment Turnover

A measure of a company's efficiency in using its assets to generate sales revenue, calculated by dividing sales by the average total assets.

Profit Margin

A financial metric that measures the percentage of revenue that exceeds the cost of goods sold, indicating the profitability of a company's sales.

Return on Investment

A measure of the profitability of an investment, calculated as the net gain or loss of the investment divided by its initial cost.