Suppose That a Consumer Purchases Just Two Goods, X and Y

question 156

Multiple Choice

Suppose that a consumer purchases just two goods, X and Y. The ratio of the price of good X to the price of good Y is the:

• A) Intercept on the Y axis of the budget line
• B) Intercept on the X axis of the budget line
• C) Size of the shift in the budget line
• D) Slope of the budget line

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Definitions:

Dual Cost Allocation

A method of cost allocation that involves assigning costs to two or more objects without arbitrarily dividing them.

Long-Run Average Usage

The average amount of a resource used over a prolonged period, reflecting consistent consumption patterns.

Dual Cost Allocation

An accounting method that assigns costs to two or more entities or projects, based on a predetermined formula or basis of apportionment.

Variable Costs

Costs that vary directly with the level of production or service delivery, such as materials and labor.