Scenario 21-1 Suppose the Price of Nachos Is $12, the Price of Price

question 157

Multiple Choice

Scenario 21-1
Suppose the price of nachos is $12, the price of water is $3, and the consumer's income is $216. In addition, suppose the consumer's budget constraint illustrates nachos on the horizontal axis and water on the vertical axis.
-Refer to Scenario 21-1. If the consumer's income rises to $288, then the budget line for nachos and water would

• A)now intersect the horizontal axis at 24 orders of nachos and the vertical axis at 96 waters.
• B)not change.
• C)now intersect the horizontal axis at 17 orders of nachos and the vertical axis at 67 waters.
• D)rotate outward along the water axis.