Multiple Choice
Use the following to answer question:
-(Figure: Kristin's Budget Line) Use Figure Kristin's Budget Line.The price of a cup of cappuccino is $3,and the price of an apple is $1.Suppose Kristin initially consumes 10 cups of cappuccino and 30 apples.Then,the price of apples increases to $3 each and the price of cappuccino remains unchanged.As a result of the price change,Kristin's optimal consumption bundle changes,reflected by a decrease in the consumption of both apples and cappuccinos.If Kristin is to maintain the same level of utility as before the price change,she must:
A) increase her income.
B) decrease her income.
C) keep her income the same,since only one good's price changed.
D) increase her income by $2.
Correct Answer:

Verified
Correct Answer:
Verified
Q63: Use the following to answer question: <img
Q64: Use the following to answer question: <img
Q65: Use the following to answer question: <img
Q66: Javon is consuming his optimal utility-maximizing consumption
Q67: Use the following to answer question: <img
Q69: Mr.Coiner is always willing to exchange two
Q70: Use the following to answer question: <img
Q71: For most goods,indifference curves:<br>A)may intersect.<br>B)slope upward.<br>C)are concave
Q72: (Scenario: E-Books and Sports Tickets)Read the scenario
Q73: A(n)_ is a curve that shows all