Suppose a Consumer Has Preferences Over Two Goods,x and Y,which

question 6

Multiple Choice

Suppose a consumer has preferences over two goods,x and y,which are perfect substitutes.In particular,two units of x is equivalent to one unit of y.If the price of x is $1,the price of y is $3,and the consumer has $30 of income to allocate to these two goods,how much of each good should the consumer purchase to maximize satisfaction?

• A)Thirty units of x and zero units of y.
• B)Zero units of x and ten units of y.
• C)Fifteen units of x and five units of y.
• D)Twelve units of x and six units of y.

---

Definitions:

Economic Results

The outcomes related to the financial performance and economic health of a business or economy, reflecting growth or challenges.

Profitability

Profitability is a financial metric indicating the degree to which a company or business activity yields profit, comparing revenue against expenses over a specific period.

Tier 2 Environmental Costs

The indirect costs associated with environmental impacts and resource use that are not directly tied to a company's operations, such as societal or external environmental costs.

Depreciation

A method of allocating the cost of a tangible asset over its useful life, reflecting the loss of value over time due to factors like age, wear and tear, or obsolescence.