Assume Jayden's budget constraint is represented in the graph shown. Suppose Jayden initially has $24 to spend on these items. If Jayden's income decreases to $12, which of the following is true?
A)One possible new consumption bundle is 2 cases of soda and 3 gallons of milk.
B)The new x-intercept of the budget constraint will be 3, and the new y-intercept will be 2.
C)The slope of the budget constraint will decrease.
D)The budget constraint will shift, but it is impossible to know the new intercepts.

Question

Assume Jayden's budget constraint is represented in the graph shown. Suppose Jayden initially has $24 to spend on these items. If Jayden's income decreases to $12, which of the following is true?
A)One possible new consumption bundle is 2 cases of soda and 3 gallons of milk. 
B)The new x-intercept of the budget constraint will be 3, and the new y-intercept will be 2. 
C)The slope of the budget constraint will decrease. 
D)The budget constraint will shift, but it is impossible to know the new intercepts.

Quizplus · Accepted Answer

The Answer of  Assume Jayden's budget constraint is represented in the graph shown. Suppose Jayden initially has $24 to spend on these items. If Jayden's income decreases to $12, which of the following is true?
A)One possible new consumption bundle is 2 cases of soda and 3 gallons of milk. 
B)The new x-intercept of the budget constraint will be 3, and the new y-intercept will be 2. 
C)The slope of the budget constraint will decrease. 
D)The budget constraint will shift, but it is impossible to know the new intercepts.

Assume Jayden's Budget Constraint Is Represented in the Graph Shown