Refer to the information provided in Figure 6.4 below to answer the question(s) that follow. Figure 6.4
-Refer to Figure 6.4. Bill's budget constraint is AC. If the black bean price decreases, Bill's budget constraint will be
A) AO.
B) AB.
C) AC.
D) AD.

Question

Refer to the information provided in Figure 6.4 below to answer the question(s) that follow.  Figure 6.4
-Refer to Figure 6.4. Bill's budget constraint is AC. If the black bean price decreases, Bill's budget constraint will be
A) AO. 
B) AB. 
C) AC. 
D) AD.

Quizplus · Accepted Answer

A decrease in the price of black beans allows Bill to purchase more black beans for the same amount of money, shifting the budget constraint outward to AD.

Refer to the Information Provided in Figure 6