Tonya, who is rich, and Jerome, who is poorer, both buy orange juice and croissants for lunch at the student cafeteria. Their budget constraints on a diagram with orange juice on the vertical axis and croissants on the horizontal have the same
A) horizontal intercepts.
B) midpoints.
C) vertical intercepts.
D) slopes.

Question

Quizplus · Accepted Answer

The slopes of the budget constraints are the same because they both face the same prices for orange juice and croissants, assuming no difference in prices for different income levels.

Tonya, Who Is Rich, and Jerome, Who Is Poorer, Both