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Related to the Economics in Practice on Page 121: Before

Question 152

Multiple Choice

Related to the Economics in Practice on page 121: Before the imposition of an excise tax on beer, name-brand beer sold for $20 per case and generic beer sold for $12 per case. After the imposition of the tax, name-brand beer sold for $28 per case and generic beer sold for $20 per case. The slope of the budget line for a consumer choosing between name-brand and generic beer after the tax was imposed was


A) 0.6.
B) 0.71.
C) 1.4.
D) 1.67.

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