Suppose That the Quantity of Good Y Is Measured Along

question 325

Multiple Choice

Suppose that the quantity of good y is measured along the vertical axis and that the quantity of good x is measured along the horizontal axis. If the price of good x is $5 and the price of good y is $10 when income is $200 per time period, the slope of the consumer's budget constraint will be

• A) -0.5.
• B) -2.
• C) -5.
• D) -10.

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Definitions:

Incidental Beneficiary

A third party who benefits from a contract between two other parties, despite not being a party to that contract and having no rights to enforce the terms of the contract.

Intended Beneficiary

A person or entity that is not a party to a contract but stands to benefit from the contract's performance.

Obligor

A contractual party who agrees to do something for the other party.

Donee Beneficiary

A donee beneficiary is a third party who benefits from a contract made between two other parties, where the intent is to gift the benefits of the contract to this third party.