-Max has allocated $100 toward meats for his barbecue.His budget line and indifference map are shown in the above figure.If the price of burger increases,which of the following bundles are in Max's opportunity set?
A) b, d, e
B) d, e
C) a, b, c, d, e
D) None of the labeled points are in Max's opportunity set.

Question

-Max has allocated $100 toward meats for his barbecue.His budget line and indifference map are shown in the above figure.If the price of burger increases,which of the following bundles are in Max's opportunity set?
A) b, d, e 
B) d, e 
C) a, b, c, d, e 
D) None of the labeled points are in Max's opportunity set.

Quizplus · Accepted Answer

If the price of burgers increases, Max's budget line will shift inward, reducing the number of burgers he can afford. None of the labeled points will be affordable with the new budget constraint.

-Max Has Allocated $100 Toward Meats for His Barbecue