Suppose That the Quantity of Hamburgers Is Measured Along the Vertical

question 237

Multiple Choice

Suppose that the quantity of hamburgers is measured along the vertical axis and that the quantity of popcorn is measured along the horizontal axis. The vertical intercept is 10 hamburgers, and the slope of the budget line is -2. If the price of popcorn falls from $1 to $0.50, then we know that

• A) the vertical intercept shifts to 20 hamburgers.
• B) the vertical intercept shifts to 5 hamburgers.
• C) the horizontal intercept shifts to 10 bags of popcorn.
• D) the horizontal intercept shifts to 20 bags of popcorn.

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