Solved

Mark Spends His Weekly Income on Gin and Cocktail Olives

Question 116

Multiple Choice

Mark spends his weekly income on gin and cocktail olives.The price of gin has risen from $7 to $9 per bottle,the price of cocktail olives has fallen from $6 to $5 per jar,and Mark's income has stayed fixed at $46 per week.If you illustrate gin on the vertical axis and cocktail olives on the horizontal axis,then the budget constraint


A) is steeper after the price changes.
B) is flatter after the price changes.
C) is the same after the price changes.
D) shifts in a parallel fashion to the old budget constraint after the price changes.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents