Question 1
Refer to the information provided in Figure 6.6 below to answer the question(s) that follow.
Refer to Figure 6.6. Bill's budget constraint is
BD. Bill's income is $800, the price of a bell pepper is $1, and the price of a bag of black beans is $1. At point
B Bill is buying ________ bell peppers and ________ bags of black beans.
◦ 0; 800
◦ 800; 0
◦ 400; 400
◦ 600; 200
Question 2
Refer to the information provided in Figure 6.6 below to answer the question(s) that follow.
Refer to Figure 6.6. Bill's budget constraint was originally
EF. If his new budget constraint is
CD, then his income
◦ increased.
◦ decreased.
◦ did not change but the price of black beans decreased.
◦ did not change but the price of black beans increased.
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