The diagram shows Sam's budget line. Which of the following would result in Sam's budget line shifting leftward and not changing its slope? ### Transcription for Educational Website#### Graph ExplanationThe graph displays the relationship between the consumption of gasoline and coffee per week. The vertical axis represents gasoline consumption in gallons, ranging from 0 to 40 gallons per week. The horizontal axis represents coffee consumption in pounds, ranging from 0 to 24 pounds per week.The graph is a straight line with a negative slope, indicating an inverse relationship between the two variables. As consumption of gasoline decreases, consumption of coffee increases, and vice versa.#### Multiple Choice Options- **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.** An increase 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.- **E.** A simultaneous doubling of the price of a gallon of gasoline and doubling of the price of a pound of coffee.The context provided by the graph is used to analyze these options, likely in relation to consumer behavior or economic principles.

Looking the the Sam's Budget line, to shift the budget line inward without changing its slope can be…

32 24 16 4 8 12 16 20 24 Coffee (pounds per week) OA. 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. OC. An increase 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. E. A simultaneous doubling of the price of a gallon of gasoline and doubling of the price of a pound of coffee. Gasoline (gallons per week)

32 24 16 4 8 12 16 20 24 Coffee (pounds per week) OA. 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. OC. An increase 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. E. A simultaneous doubling of the price of a gallon of gasoline and doubling of the price of a pound of coffee. Gasoline (gallons per week)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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