Multiple Choice
Karen,Tara,and Chelsea each buy ice cream and paperback novels to enjoy on hot summer days.Ice cream costs $5 per gallon,and paperback novels cost $8 each.Karen has a budget of $80,Tara has a budget of $60,and Chelsea has a budget of $40 to spend on ice cream and paperback novels.Which of the following statements is correct?
A) Each woman faces the same budget constraint.
B) The slope of the budget constraint is the same for each woman.
C) The area underneath the budget constraint is larger for Chelsea than for Karen.
D) All of the above are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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