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Figure: Budget Lines for Tea and Scones
-(Figure: Budget Lines for Tea and Scones) Look at the figure Budget Lines for Tea and Scones. For months now, Agnes has had $20 per month to spend on tea and scones. The price of each cup of tea and each scone has been $1. Which of the charts shows what will happen to her budget line if the price of a scone rises to $2?
A) A
B) B
C) C
D) D

Question

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Figure: Budget Lines for Tea and Scones 
-(Figure: Budget Lines for Tea and Scones) Look at the figure Budget Lines for Tea and Scones. For months now, Agnes has had $20 per month to spend on tea and scones. The price of each cup of tea and each scone has been $1. Which of the charts shows what will happen to her budget line if the price of a scone rises to $2?
A) A 
B) B 
C) C 
D) D

Quizplus · Accepted Answer

When the price of a scone rises to $2, Agnes will not be able to afford as many scones as before, so the maximum number of scones she can buy will decrease. This will cause the budget line to rotate inward, as shown in chart B.

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