Scenario 21-1
Suppose the price of hot wings is $10, the price of beer is $1, and the consumer's income is $50. In addition, suppose the consumer's budget constraint illustrates hot wings on the horizontal axis and beer on the vertical axis.
-Refer to Scenario 21-1. If the price of beer doubles to $2, then the
A)budget constraint intersects the vertical axis at 25 beers.
B)slope of the budget constraint rises to -2.
C)slope of the budget constraint falls to -4.
D)budget constraint shifts inward in a parallel fashion.

Question

Quizplus · Accepted Answer

With the price of beer doubling to $2, the consumer can now afford 25 beers with their $50 income, as $50/$2 = 25.

Scenario 21-1 Suppose the Price of Hot Wings Is $10, the Price