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

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1
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
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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