An Agent Consumes Goods $x$ And $y$ , with Prices $P _ { x } = \$ 5$

question 54

Multiple Choice

An agent consumes goods $x$ and $y$ , with prices $P _ { x } = \$ 5$ per unit and $P _ { y } = \$ 8$ per unit. The consumer's income is $I = \$ 48$ . The government imposes a tax of $\$ 1$ per unit on good $x$ . What is the new equation for the budget constraint?

• A) \(y = 6 - ( 5 / 8 ) x\)
• B) \(y = 6 - .75 x\)
• C) \(y = 8 - ( 6 / 8 ) x\)
• D) \(y = 48 - 8 x\)

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Definitions:

Benefit Caps

A limit imposed on the total amount of certain benefits that a household can receive, intended to ensure that the total benefits do not exceed a specified amount.

Effective Administration

The efficient and productive management of organizational resources and processes to achieve desired outcomes and objectives.

Benefits Programs

A range of programs offered by employers to provide various types of health care, retirement, and other benefits to their employees.

Cafeteria Benefit Plans

Employee benefit programs that allow workers to choose from a variety of pre-tax benefits options, akin to a cafeteria selecting various meals.