-In the Figure Above, Sam Originally Selects His Consumption Bundle

Multiple Choice

-In the figure above, Sam originally selects his consumption bundle at point A with 3 pounds of olives and 4 pounds of pickles a year. Then the price of pickles rises and the price of olives falls so that his budget line rotates but it still goes through point A. At point A, the slope of the indifference curve I₁ ________ the slope of the new budget line.

A) is steeper than
B) is flatter than
C) has the same slope as
D) could be steeper than, flatter than, or have the same slope as