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Let II Be the Income of the Consumer PxP _ { x }

Question 3

Multiple Choice

Let II be the income of the consumer, PxP _ { x } be the price of good xx and PyP _ { y } be the price of good yy . If good xx is measured along the horizontal axis and good yy is measured along the vertical axis, then the " xx -intercept" measures the maximum amount of good xx that the consumer can afford, which can be expressed as which of the following?


A) PxPy\frac { P _ { x } } { P _ { y } }
B) lPy\frac { l } { P _ { y } }
C) IPx\frac { I } { P _ { x } }
D) Pxl\frac { P _ { x } } { l }

Correct Answer:

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