FIGURE 6-2 -Refer to Figure 6-2.Suppose That the Price of X Is

question 71

Multiple Choice

FIGURE 6-2
-Refer to Figure 6-2.Suppose that the price of X is $2,the price of Y is $1,and the consumer's income is $10.The consumer is currently buying 3 units of good X and 4 units of good Y.In order to maximize his/her utility,the consumer should

• A)not change his/her behaviour.
• B)buy the same amount of X but less Y.
• C)buy more of X but the same amount Y.
• D)buy more of X and less Y.
• E)buy less of X and more Y.

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Definitions:

Unit Sales

The quantity of items that have been sold within a particular timeframe.

JIT Policy

Just-In-Time policy, a strategy that aims to improve a business's return on investment by reducing in-process inventory and related carrying costs.

Variable Overhead

Costs that vary with the level of output or production activity, such as materials and labor.

Fixed Overhead

Expenditures that are consistent and independent of production or sales volume, like rent, salaries, and insurance.