George Has a Weekly Income (I) of $50, Which He

Multiple Choice

George has a weekly income (I) of $50, which he uses to purchase doughnuts (D) and coffee (C) . The price of a doughnut is $1 and the price of coffee is $2.50. Suppose George's income drops to $25 and the prices of doughnuts and coffee each fall to one-half their initial prices. One would expect George's budget line to:

A) shift to the right.
B) shift to the left.
C) rotate around one of the axes, but one cannot tell which one.
D) stay the same.