Multiple Choice
Assume Jayden's budget constraint is represented in the graph shown. Suppose Jayden initially has $24 to spend on these items. If Jayden's income decreases to $12, which of the following is true?
A) One possible new consumption bundle is 2 cases of soda and 3 gallons of milk.
B) The new x-intercept of the budget constraint will be 3, and the new y-intercept will be 2.
C) The slope of the budget constraint will decrease.
D) The budget constraint will shift, but it is impossible to know the new intercepts.
Correct Answer:

Verified
Correct Answer:
Verified
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