Suppose the price of beans is increased. Which of the tollowing statements is true? Select one: O a. Vanessa's budget line shift inwards O b. Vanessa's indifference curve will shift inwards O c. Vanessa's budget line will pivot inwards along the axis representing beans Od. Vanessa's budget line will pivot outwards along the axis representing broccoli
Suppose the price of beans is increased. Which of the tollowing statements is true? Select one: O a. Vanessa's budget line shift inwards O b. Vanessa's indifference curve will shift inwards O c. Vanessa's budget line will pivot inwards along the axis representing beans Od. Vanessa's budget line will pivot outwards along the axis representing broccoli
Chapter1: Making Economics Decisions
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Transcribed Image Text:Teit 0.4037
Suppose the price of beans is increased. Which of the following statements is true?
Select one:
a. Vanessa's budget line shift inwards
Ob Vanessa's indifference curve will shift inwards
O C. Vanessa's budget line will pivot inwards along the axis representing beans
O d. Vanessa's budget line will pivot outwards along the axis representing broccoli
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Transcribed Image Text:The hurricane that passed through Louisiana in the summer of 2005 destroyed approximately a quarter of the
sugar cane crop. Ceteris paribus, the
sugar
and the price of sugar
of
Select one.
O a. supply of; decreased; decreased
O b. demand for; increased,decreased
O c. demand for, increased, increased
O d. demand for, decreased, decreased
e. supply of, decreased; increased
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Expert Solution
Step 1
- With price of beans increased, the quantity consumed or purchased with respect to given budget will decrease and the budget line will shift inward for beans reflecting lower consumption of beans.
Therefore answer is “vanessa budget line will pivot inwards along the axis representing beans”
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