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Let I Be the Income of the Consumer, Px Be xx

Question 41

Multiple Choice

Let I be the income of the consumer, Px be the price of good x and Py be the price of good y. 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


A) Px/PyP _ { x } / P _ { y }
B) I/PyI / P _ { y }
C) I/PxI / P _ { x }
D) Px/IP _ { x } / I

Correct Answer:

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