Suppose the price of Pizza is $10 the price of cola is $1, and the consumer's income is $60. In addition suppose the consumer's budget constraint measures pizza on the horizontal axis and cola on the vertic axis. If the consumer's income rises to $100 while the prices of pizza and cola are constant, then the budget line for pizza and cola would ? a- not change b- now intersect the horizontal axis at 12 pizzas and the vertical: axis at 120 colas C- now intersect the horizontal axis at 10 pizzas and the vertical axis at 100 colas d- would rotate along the cola axis

Suppose the price of Pizza is $10 the price of cola is $1, and the consumer's income is $60. In addition suppose the consumer's budget constraint measures pizza on the horizontal axis and cola on the vertic axis. If the consumer's income rises to $100 while the prices of pizza and cola are constant, then the budget line for pizza and cola would ? a- not change b- now intersect the horizontal axis at 12 pizzas and the vertical: axis at 120 colas C- now intersect the horizontal axis at 10 pizzas and the vertical axis at 100 colas d- would rotate along the cola axis

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 19SQ

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-Suppose the price of Pizza is $10 the price of cola is $1, and the consumer's income is $60. In addition, suppose the consumer's budget constraint measures pizza on the horizontal axis and cola on the vertical axis. If the price of cola doubles to $2 while both the price of pizza is still $10, and the income is constant at $60 then the : a-Budget constraint intersects the vertical axis 30 colas b- Slope of the budget constraint rises to -5/2 c- Budget constraint intersects the horizontal axis at 25 pizzas d- budget constraint intersects the horizontal axis 5 pizzas I