Suppose You Are Given a Coupon for Pizza

question 25

Multiple Choice

Suppose you are given a coupon for pizza.This coupon lowers the price for each additional pizza you buy by 5% for each addition pizza you buy.What happens to your budget constraint, with pizza on the horizontal axis and a composite good on the vertical?

• A)The vertical intercept remains the same but the slope becomes steeper as more pizzas are bought.
• B)The vertical intercept increases and the slope becomes steeper as more pizzas are bought.
• C)The vertical intercept remains the same but the slope becomes shallower as more pizzas are bought.
• D)The vertical intercept increases but the slope becomes shallower as more pizzas are bought.
• E)None of the above.

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Definitions:

Low-Skill

Pertaining to jobs or tasks requiring minimal specialized training or education, often associated with lower wages.

International Trade

The exchange of goods and services between countries, enabling economies to specialize and grow through the trade of products they produce efficiently.

Unskilled Workers

Individuals who lack specialized training, education, or expertise, making them suitable for jobs requiring minimal technical skills.

Wage Gap

Refers to the difference in earnings between different groups of workers, often highlighted between genders or races.