Kimiko is planning a party to celebrate her birthday. She has decided to serve sushi and yakitori meat skewers. Each serving of sushi is $8 and each yakitori skewer is $2. Kimiko has $240 to spend on the party. Please graph her budget line. Her friend, Barry, thinks there will not be enough food, so he gives Kimiko $80 more to spend on the party (she now has $320). How will this affect the budget line? a. There will be a parallel shift of the budget line away from the origin. b. There will be a parallel shift of the budget line towards the origin. c. There will be an outward shift of point A only. d. There will be an outward shift of point B only.
Kimiko is planning a party to celebrate her birthday. She has decided to serve sushi and yakitori meat skewers. Each serving of sushi is $8 and each yakitori skewer is $2. Kimiko has $240 to spend on the party. Please graph her budget line. Her friend, Barry, thinks there will not be enough food, so he gives Kimiko $80 more to spend on the party (she now has $320). How will this affect the budget line? a. There will be a parallel shift of the budget line away from the origin. b. There will be a parallel shift of the budget line towards the origin. c. There will be an outward shift of point A only. d. There will be an outward shift of point B only.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Kimiko is planning a party to celebrate her birthday. She has decided to serve sushi and yakitori meat skewers. Each serving of sushi is $8 and each yakitori skewer is $2. Kimiko has $240 to spend on the party. Please graph her budget line.
Her friend, Barry, thinks there will not be enough food, so he gives Kimiko $80 more to spend on the party (she now has $320).
How will this affect the budget line?
a. There will be a parallel shift of the budget line away from the origin.
b. There will be a parallel shift of the budget line towards the origin.
c. There will be an outward shift of point A only.
d. There will be an outward shift of point B only.
Transcribed Image Text:Kimiko is planning a party to celebrate her birthday. She has decided to serve sushi and yakitori meat skewers. Each serving of
sushi is $8 and each yakitori skewer is $2. Kimiko has $240 to spend on the party. Please graph her budget line.
Quantity of sushi
150
135
120
105
90
75
60
45
30
15
O
O
15
30
45 60 75 90
Quantity of yakitori
A
105
120
B
135
150
Her friend, Barry, thinks there will not be enough food,
so he gives Kimiko $80 more to spend on the party (she
now has $320).
How will this affect the budget line?
There will be a parallel shift of the budget line away
from the origin.
There will be a parallel shift of the budget line
towards the origin.
There will be an outward shift of point A only.
There will be an outward shift of point B only.
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