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

question 80

Multiple Choice

Assume Jayden's budget constraint is represented in the graph shown. Suppose Jayden initially has $24 to spend on these items. If Jayden's income decreases to $12, which of the following is true?

• A)One possible new consumption bundle is 2 cases of soda and 3 gallons of milk.
• B)The new x-intercept of the budget constraint will be 3, and the new y-intercept will be 2.
• C)The slope of the budget constraint will decrease.
• D)The budget constraint will shift, but it is impossible to know the new intercepts.