Boris has $100 to spend on bananas and/or babacos. Suppose you have drawn his budget line for bananas and babacos with bananas on the horizontal axis and babacos on the vertical axis, Assume that the price of bananas decreases by 10% and the price of babacos increases by 10%, while Boris' income decreases by 5%. Which of the following graphs describes the above situation? Note that graphs are not drawn to scale. Qudacen graph (a) Qula graph (b) Quananas Rbananas Quabacos Qubacon graph (c) graph (d) Qunanas Qubacos Qumanas Quabacos graph (e) graph (f) Quananas Qunanas
Boris has $100 to spend on bananas and/or babacos. Suppose you have drawn his budget line for bananas and babacos with bananas on the horizontal axis and babacos on the vertical axis, Assume that the price of bananas decreases by 10% and the price of babacos increases by 10%, while Boris' income decreases by 5%. Which of the following graphs describes the above situation? Note that graphs are not drawn to scale. Qudacen graph (a) Qula graph (b) Quananas Rbananas Quabacos Qubacon graph (c) graph (d) Qunanas Qubacos Qumanas Quabacos graph (e) graph (f) Quananas Qunanas
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Boris has $100 to spend on bananas and/or babacos. Suppose you have drawn his budget line for
bananas and babacos with bananas on the horizontal axis and babacos on the vertical axis. Assume that
the price of bananas decreases by 10% and the price of babacos increases by 10%, while Boris' income
decreases by 5%.
Which of the following graphs describes the above situation? Note that graphs are not drawn to scale.
Quatacos
graph (a)
Quabacos
graph (b)
<bananas
bananas
Quacen
Quabacos
graph (c)
graph (d)
Quananas
Quananas
Quabacos
Qhabacos
graph (e)
graph (f)
Quananas
Cbananas
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