Alex Distributes His Monthly Income of $600 Between Two Goods,movies

question 77

Multiple Choice

Alex distributes his monthly income of $600 between two goods,movies and food.By spending his entire income on movies,he can enjoy a maximum of 20 movies.On the other hand,by spending his entire income on food he can consume a total of 60 units of food.Assume that food consumption is measured along the horizontal axis and the consumption of movies is measured on the vertical axis.Calculate the slope of Alex's budget line when the price of food increases to $20 while the price of movie remains unchanged.

• A)-2/3
• B)- 1.5
• C)-2
• D)-3/4

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Definitions:

Net Profit Margin

A financial ratio representing the percentage of net income to sales revenue, indicating how much of each dollar earned by the company is translated into profits.

Return on Assets

A ratio indicating how efficiently a company is using its assets to generate profit, calculated as net income divided by total assets.

Earnings Per Share

A metric that divides a company's profit available to its common stockholders by the average outstanding shares.

Debt-to-Equity

A metric illustrating the comparative levels of a company's debt and shareholder equity utilized in asset financing.