Murphy Used to Consume 100 Units of X and 50

question 22

Multiple Choice

Murphy used to consume 100 units of X and 50 units of Y when the price of X was $2 and the price of Y was $4.If the price of X rose to $6 and the price of Y rose to $5, how much would Murphy's income have to rise so that he could still afford his original bundle?

• A)$750
• B)$250
• C)$450
• D)$500
• E)None of the above.

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Definitions:

Vacation Pay

Compensation owed to employees for their entitled but unused vacation time, often recognized as a liability on the balance sheet.

GAAP

An aggregation of universally recognized rules and standards in accounting for presenting financial information.

Non-Interest-Bearing Note

A type of promissory note that does not accrue interest over its life, with the borrower repaying only the principal amount borrowed.