Assume Kiara's Budget Constraint Is Represented by the Graph Shown

question 65

Multiple Choice

Assume Kiara's budget constraint is represented by the graph shown. If Kiara's grocery store discounts cases of soda by 50 percent, which of the following is true?

• A)One possible new consumption bundle is 4 cases of soda and 3 gallons of milk.
• B)The new x-intercept of the budget constraint will be 6, and the new y-intercept will be 2.
• C)The slope of the budget constraint will become flatter.
• D)Kiara will certainly buy fewer gallons of milk.

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