The following figure shows the budget constraint of Lesley when she is faced with two goods: burgers and icecream.

-Refer to the figure above.If Lesley's budget for burgers and ice creams is cut by half,Lesley's new budget constraint ________.
A) will cross the vertical axis at 5, and will cross the horizontal axis at 3
B) will start from the same point on the vertical axis, but will cross the horizontal axis at 3
C) will start from the same point on the horizontal axis, but will cross the vertical axis at 5
D) will cross the vertical axis at 20, and will cross the horizontal axis at 12

Question

The following figure shows the budget constraint of Lesley when she is faced with two goods: burgers and icecream.
 
-Refer to the figure above.If Lesley's budget for burgers and ice creams is cut by half,Lesley's new budget constraint ________.
A) will cross the vertical axis at 5, and will cross the horizontal axis at 3 
B) will start from the same point on the vertical axis, but will cross the horizontal axis at 3 
C) will start from the same point on the horizontal axis, but will cross the vertical axis at 5 
D) will cross the vertical axis at 20, and will cross the horizontal axis at 12

Quizplus · Accepted Answer

When Lesley's budget is cut by half, both the amount of burgers and ice creams that can be purchased are halved, leading to a new budget constraint that crosses the vertical axis at half the original amount of ice creams and the horizontal axis at half the original amount of burgers.

The Following Figure Shows the Budget Constraint of Lesley When