Refer to the Given Graph

question 127

Multiple Choice

Refer to the given graph. Suppose you had tastes as described by the indifference curves above. If your income was $100, Pₓ = 20 and Pᵧ = 25, which combination of X and Y would maximize your utility?

• A)5X and 0Y
• B)0X and 4Y
• C)3X and 1Y
• D)5X and 4Y

---

Definitions:

Analyzing

The process of examining financial data to understand the state of a business, spot trends, or make decisions.

Sole Proprietorship

A business owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.

Stockholder

An individual or entity that owns shares in a corporation, thereby having a claim on part of its assets and earnings.

Indefinitely

For an unlimited or unspecified period of time, without a predetermined end point.