A Consumer Has an Income of $100, and the Price

question 257

Multiple Choice

A consumer has an income of $100, and the price of X is $2, while the price of Y is $4. If the consumer buys 20 units of X, then the maximum quantity of Y that she could also buy is

• A)15
• B)25
• C)40
• D)10

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Definitions:

Contribution Rate

The percentage of income that is saved or contributed to a retirement plan by an individual or employer.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales. Examples include rent, salaries, and insurance premiums.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs of goods sold or raw material expenses.

Break-Even Revenue

The amount of income needed to cover all operating expenses, with no profit or loss.