Multiple Choice
Scenario 21-1
Suppose the price of pizza is $10, the price of cola is $1, and the consumer's income is $50. In addition, suppose the consumer's budget constraint measures pizza on the horizontal axis and cola on the vertical axis.
-Refer to Scenario 21-1.If the consumer's income rises to $60,then the budget line for pizza and cola would
A) now intersect the horizontal axis at 6 pizzas and the vertical axis at 60 colas.
B) not change.
C) now intersect the horizontal axis at 4 pizzas and the vertical axis at 16 colas.
D) rotate outward along the cola axis.
Correct Answer:
Verified
Correct Answer:
Verified
Q149: The income effect of a price change
Q154: A Giffen good is one in which
Q182: Figure 21-6<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2178/.jpg" alt="Figure 21-6
Q183: A consumer's preferences for right shoes and
Q184: A consumer has preferences over two goods,x
Q185: Higher indifference curves are preferred to lower
Q186: Consider the budget constraint between "spending today"
Q188: A way to describe the consumer's optimum
Q189: The price of gin has risen from
Q192: Beer and pretzels are normal goods.When the