Consider a graph with hamburger on the X-axis and cheese crackers on the Y-axis.The outbreak of mad cow disease,which will change the price of hamburgers,will:
A)not change the slope of the budget line.
B)lead to a parallel shift of the budget line depending on the change in price.
C)change the y-intercept of the budget line.
D)change the x-intercept of the budget line.

Question

Quizplus · Accepted Answer

The outbreak of mad cow disease will likely increase the price of hamburgers, reducing the quantity of hamburgers that can be bought with a fixed budget, thus changing the x-intercept of the budget line.

Consider a Graph with Hamburger on the X-Axis and Cheese