Guy Has an Income (Y)of $50 with Which He Can

question 19

Multiple Choice

Guy has an income (Y) of $50 with which he can purchase DVDs (D) at $10 each and haircuts (H) at $20 each. Which one of the following represents Guy's budget line?

• A)Y = 10QD - 20QH
• B)50 = QD + QH
• C)Y = 50 + QD + QH
• D)20Y = QD + 10QH
• E)50 = 10QD + 20QH

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Definitions:

Trust

A provision in equity whereby one person transfers property to a second person obligated to use it to the benefit of a third person.

Involuntary Assignment

Assignment of rights that takes place involuntarily, as in the cases of death and bankruptcy.

Equity Provision

A clause in an agreement that allows for adjustment based on the equity value of an entity or asset.

Contract Terms

The specific provisions, conditions, and stipulations that define the agreement and obligations between parties in a contract.