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-The Figure Above Shows Sam's Budget Line

Question 434

Multiple Choice

-The figure above shows Sam's budget line. Which of the following would result in Sam's budget line shifting leftward and not changing its slope? A) a decline in his preferences for both gasoline and coffee B) an equal percentage reduction in the prices of both a gallon of gasoline and a pound of coffee C) a decrease in Sam's income D) a fall in the ratio of the price of a gallon of gasoline to the price of a pound of coffee
-The figure above shows Sam's budget line. Which of the following would result in Sam's budget line shifting leftward and not changing its slope?


A) a decline in his preferences for both gasoline and coffee
B) an equal percentage reduction in the prices of both a gallon of gasoline and a pound of coffee
C) a decrease in Sam's income
D) a fall in the ratio of the price of a gallon of gasoline to the price of a pound of coffee

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