Assume the Quantity of X Is Measured on the Horizontal

question 8

Multiple Choice

Assume the quantity of X is measured on the horizontal axis, and the quantity of Y is measured on the vertical axis. Assume the price of X is $3, and the price of Y is $6. If Amanda has $90 to spend on X and Y , then:

• A) she can buy at most 30 X.
• B) her budget line has a slope of - 2.
• C) her budget line has a slope of -3.
• D) she can buy at most 15 X.

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Definitions:

Investments

The balance sheet caption used to report long-term investments in stocks not intended as a source of cash in the normal operations of the business.

Cash

Money in the form of currency or coins, readily available for transactions.

Prepaid Expenses

Expenses paid in advance for a benefit yet to be received, recorded as assets on the balance sheet.

Goods Purchased

Transactions involving the acquisition of physical products or materials for business use or resale.