(Figure and Table: The Budget Line) Use Figure and Table: The Budget Line. A(n) _____ in the price of potatoes would rotate the budget line, changing the intercept on the _____ axis and moving it _____ the origin. Select one: a. decrease; vertical; away from b. increase; horizontal; away from c. increase; vertical; away from d. decrease; horizontal; toward
(Figure and Table: The Budget Line) Use Figure and Table: The Budget Line. A(n) _____ in the price of potatoes would rotate the budget line, changing the intercept on the _____ axis and moving it _____ the origin. Select one: a. decrease; vertical; away from b. increase; horizontal; away from c. increase; vertical; away from d. decrease; horizontal; toward
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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(Figure and Table: The Budget Line) Use Figure and Table: The Budget Line. A(n) _____ in the
Select one:
a. decrease; vertical; away from
b. increase; horizontal; away from
c. increase; vertical; away from
d. decrease; horizontal; toward
Transcribed Image Text:**Figure and Table: The Budget Line**
The figure illustrates a budget line graph that shows the trade-off between two goods: clams and potatoes. The x-axis represents the quantity of clams in pounds, ranging from 0 to 6. The y-axis represents the quantity of potatoes in pounds, ranging from 0 to 12. The budget line slopes downward from point A, where there are 10 pounds of potatoes and 0 pounds of clams, to point F, where there are 0 pounds of potatoes and 5 pounds of clams.
Points on the budget line represent different consumption bundles:
- **Point A**: 0 pounds of clams and 10 pounds of potatoes.
- **Point B**: 1 pound of clams and 8 pounds of potatoes.
- **Point C**: 2 pounds of clams and 6 pounds of potatoes.
- **Point D**: 3 pounds of clams and 4 pounds of potatoes.
- **Point E**: 4 pounds of clams and 2 pounds of potatoes.
- **Point F**: 5 pounds of clams and 0 pounds of potatoes.
The table below the graph provides a detailed list of these consumption bundles and their respective quantities of clams and potatoes.
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