Assume Kiara's budget constraint is represented by the graph shown. If Kiara's grocery store discounts cases of soda by 50 percent, which of the following is true?
A)One possible new consumption bundle is 4 cases of soda and 3 gallons of milk.
B)The new x-intercept of the budget constraint will be 6, and the new y-intercept will be 2.
C)The slope of the budget constraint will become flatter.
D)Kiara will certainly buy fewer gallons of milk.

Question

Assume Kiara's budget constraint is represented by the graph shown. If Kiara's grocery store discounts cases of soda by 50 percent, which of the following is true?
A)One possible new consumption bundle is 4 cases of soda and 3 gallons of milk. 
B)The new x-intercept of the budget constraint will be 6, and the new y-intercept will be 2. 
C)The slope of the budget constraint will become flatter. 
D)Kiara will certainly buy fewer gallons of milk.

Quizplus · Accepted Answer

The Answer of  Assume Kiara's budget constraint is represented by the graph shown. If Kiara's grocery store discounts cases of soda by 50 percent, which of the following is true?
A)One possible new consumption bundle is 4 cases of soda and 3 gallons of milk. 
B)The new x-intercept of the budget constraint will be 6, and the new y-intercept will be 2. 
C)The slope of the budget constraint will become flatter. 
D)Kiara will certainly buy fewer gallons of milk.

Assume Kiara's Budget Constraint Is Represented by the Graph Shown