Refer to the Data for a Utility-Maximizing Consumer Whose Income

question 115

Multiple Choice

Refer to the data for a utility-maximizing consumer whose income = $12. Assume that new product Z doesn't exist. How many units of X and Y will this consumer buy, given his or her $12 budget?

• A)5 of X and 7 of Y
• B)7 of X and 5 of Y
• C)6 of X and 6 of Y
• D)5 of X and 6 of Y

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Definitions:

Gross Margin

A financial metric indicating the difference between revenue and cost of goods sold, which is expressed as a percentage of revenue.

Balance Sheet

An account that outlines the financial position of a corporation by showing what it owns, owes, and the amount of money invested by shareholders at a given time.

Income Statement

A financial document that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profits.

Dividend Yield Ratio

A financial ratio that shows how much a company pays out in dividends each year relative to its share price.