Clara Spends Her Entire Budget and Consumes 5 Units of X

question 18

Multiple Choice

Clara spends her entire budget and consumes 5 units of x and 13 units of y.The price of x is twice the price of y.Her income doubles and the price of y doubles, but the price of x stays the same.If she continues to buy 13 units of y, what is the largest number of units of x that she can afford?

• A)10
• B)5
• C)12
• D)14
• E)There is not enough information to say.

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Definitions:

Cash Outlay

The actual amount of money spent or disbursed on goods, services, or assets.

Alternative Investments

Investments in asset classes other than stocks, bonds, and cash, including real estate, hedge funds, private equity, and commodities.

Discontinuing

The process of ending the manufacture, support, or offering of a product or service.

Allocated Fixed Costs

Fixed costs that are assigned or distributed to various departments, products, or activities based on specific criteria.