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 consumer's income rises to $60, then the budget line for hot wings and beer would
A)now intersect the horizontal axis at 6 orders of hot wings and the vertical axis at 60 beers.
B)not change.
C)now intersect the horizontal axis at 4 orders of hot wings and the vertical axis at 16 beers.
D)rotate outward along the beer axis.

Question

Quizplus · Accepted Answer

With an income of $60, the consumer can buy 6 orders of hot wings ($60/$10) or 60 beers ($60/$1), so the budget line intersects the axes at these points.

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