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Assume the Graph Shown Represents Dana's Budget Constraint

Question 1

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  Assume the graph shown represents Dana's budget constraint.If Dana's income to spend on these two items decreased,which of the following could be said? A)  Dana will buy more hairbands now because they are relatively less expensive. B)  Dana will be able to buy less of both goods. C)  Dana will derive more utility from each item, because she values each one more now that she's poorer. D)  All of these are true. Assume the graph shown represents Dana's budget constraint.If Dana's income to spend on these two items decreased,which of the following could be said?


A) Dana will buy more hairbands now because they are relatively less expensive.
B) Dana will be able to buy less of both goods.
C) Dana will derive more utility from each item, because she values each one more now that she's poorer.
D) All of these are true.

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