Assume that the quantity of CDs is measured on the horizontal axis, while the qu

Question

Assume that the quantity of CDs is measured on the  horizontal axis, while the quantity of movie tickets is measured on  the vertical axis. If available income decreases, then the new budget  line:

Answer

A) will have a smaller horizontal intercept, while keeping   the same vertical intercept.

B) will have a smaller vertical intercept, while keeping   the same horizontal intercept.

C) will have a smaller vertical and horizontal intercept.

D) will have a bigger vertical and horizontal intercept.

A) will have a smaller horizontal intercept, while keeping   the same vertical intercept.

B) will have a smaller vertical intercept, while keeping   the same horizontal intercept.

C) will have a smaller vertical and horizontal intercept.

D) will have a bigger vertical and horizontal intercept.

Explanation / Answer

C) will have a smaller vertical and horizontal intercept.

C) will have a smaller vertical and horizontal intercept.

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