Multiple Choice
-The above figure shows Jane's budget line and two of her indifference curves. Which of the following happens to Jane's budget line if the price of a lobster dinner falls?
A) It would rotate outward, pivoting around the vertical intercept 10 lobster dinners.
B) It would rotate outward, pivoting around the horizontal intercept 20 steak dinners.
C) It would rotate inward, pivoting around the horizontal intercept 20 steak dinners.
D) It would rotate inward, pivoting around the vertical intercept 10 lobster dinners.
Correct Answer:
Verified
Correct Answer:
Verified
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