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 increases?
A) It would rotate inward around the vertical intercept, 10 lobster dinners.
B) It would rotate outward around the horizontal intercept, 20 steak dinners.
C) It would rotate inward around the horizontal intercept, 20 steak dinners.
D) It would rotate outward around the vertical intercept, 10 lobster dinners.
Correct Answer:
Verified
Correct Answer:
Verified
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