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Suppose that the quantity of hamburgers is measured along the vertical axis and that the quantity of ...

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Suppose that the quantity of hamburgers is measured along the vertical axis and that the quantity of ...

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

• the horizontal intercept shifts to 20 bags of popcorn.

• the horizontal intercept shifts to 10 bags of popcorn.

• the vertical intercept shifts to 20 hamburgers.

• the vertical intercept shifts to 5 hamburgers.

Textbook

Economics Today: The Micro View

Edition: 19^th

Author: Miller

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