Your Budget Constraint for the Two Goods a and B

question 7

Multiple Choice

Your budget constraint for the two goods A and B is 8A + 4B = I, where I is your income. You are currently consuming more than 18 units of B. In order to get 3 more units of A, how many units of B would you have to give up?

• A) 6
• B) 0.50
• C) 0.17
• D) 2
• E) None of the above.

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Definitions:

Prospective Customer

An individual or organization that could potentially purchase a product or service but has not yet done so.

Needs

Basic or necessary desires or requirements essential for an individual's well-being or the effective functioning of a system.

Conceptual Skills

The ability to see the selling process as a whole and the relationship among its parts.

Order-Takers

Salespeople who only take orders by asking what the customer wants or waiting for the customer to order. They have no sales strategy and use no sales presentation.