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The Price of Gin Has Risen from $7 to $9

Question 53

Multiple Choice

The price of gin has risen from $7 to $9 per bottle,the price of cocktail onions has fallen from $6 to $5 per jar,and Elizabeth's income has stayed fixed at $46 per week.If you put gin on the vertical axis and cocktail onions on the horizontal axis,then the budget constraint


A) is steeper after the price changes.
B) is flatter after the price changes.
C) is the same after the price changes.
D) shifts in parallel to the old budget constraint after the price changes.

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