Suppose That MU_X = Y and MU_Y = X

question 3

Multiple Choice

Suppose that MU_X = Y and MU_Y = X. The prices of good X and good Y are $5 and $4, respectively. How many units of good X does the consumer buy if she has $410 of income?

• A) 15
• B) 41
• C) 25
• D) 33

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Definitions:

Credit Policy Variable

An element that defines the guidelines under which credit is extended to customers, including terms of payment and interest rates.

Credit Period

The duration of time a buyer is allowed to pay for goods or services received, before interest or penalties begin accruing.

Collection Policy

The specific strategies and methods a company uses to manage the collection of its accounts receivable.

Credit Policy

The guidelines a company follows to determine the amount of credit to extend to customers and the terms of payment.