Ollie South Has an Endowment of 10 Guns and 10

question 29

Multiple Choice

Ollie South has an endowment of 10 guns and 10 pounds of butter.He can buy or sell butter at $1 a pound.But the world market for guns is more complicated: he can buy guns for $5 each, but he can sell guns for only $2.If we graph his budget line with guns on the horizontal axis and butter on the vertical axis, then Ollie's budget line is a straight line

• A)joining (12, 0)and (0, 30).
• B)joining (14, 0)and (0, 14).
• C)with slope - 2/5 through the point (10, 10).
• D)with slope - 5/2 going through the point (10, 10).
• E)None of the above.