Assume Dana's budget constraint is represented in the graph shown. If Dana's income to spend on these two items decreases, which of the following could be said?
A)Dana will buy more salads now because they are relatively less expensive.
B)Dana will be able to buy less of both goods.
C)Dana will derive more utility from each item, because she values each one more now that she's poorer.
D)All of these are correct.

Question

Assume Dana's budget constraint is represented in the graph shown. If Dana's income to spend on these two items decreases, which of the following could be said?
A)Dana will buy more salads now because they are relatively less expensive. 
B)Dana will be able to buy less of both goods. 
C)Dana will derive more utility from each item, because she values each one more now that she's poorer. 
D)All of these are correct.

Quizplus · Accepted Answer

The Answer of  Assume Dana's budget constraint is represented in the graph shown. If Dana's income to spend on these two items decreases, which of the following could be said?
A)Dana will buy more salads now because they are relatively less expensive. 
B)Dana will be able to buy less of both goods. 
C)Dana will derive more utility from each item, because she values each one more now that she's poorer. 
D)All of these are correct.

Assume Dana's Budget Constraint Is Represented in the Graph Shown