Author Question: The figure above shows Sam's budget line. Which of the following would result in Sam's budget line ... (Read 107 times)

berenicecastro · **on:** Jun 29, 2018

The figure above shows Sam's budget line. Which of the following would result in Sam's budget line shifting leftward and not changing its slope?

A) a decline in his preferences for both gasoline and coffee
B) an equal percentage reduction in the prices of both a gallon of gasoline and a pound of coffee
C) a decrease in Sam's income
D) a fall in the ratio of the price of a gallon of gasoline to the price of a pound of coffee

Question 2

You took a job as a salesperson in an insurance company with the knowledge that you have 0.5 chance of making 2,000 a month or 3,000 a month. How much will you make each month?

A) definitely 2,500
B) definitely 2,000
C) definitely 3,000
D) either 2,000 or 3,000