Multiple Choice
George has a weekly income (I) of $50,which he uses to purchase doughnuts (D) and coffee (C) .The price of a doughnut is $1 and the price of coffee is $2.50.Suppose George's income drops to $25 and the prices of doughnuts and coffee each fall to one-half their initial prices.One would expect George's budget line to:
A) shift to the right.
B) shift to the left.
C) rotate around one of the axes,but we cannot tell which one.
D) stay the same.
Correct Answer:
Verified
Correct Answer:
Verified
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