Author Question: Junkfood Jill spends all of her income on jellybeans and cola. Suppose that Jill's income is 30, the ... (Read 93 times)

DyllonKazuo · **on:** Jun 29, 2018

Junkfood Jill spends all of her income on jellybeans and cola. Suppose that Jill's income is 30, the price of a bag of jellybeans is 6, and the price of a bottle of cola is 2.

If bags of jellybeans are graphed along the vertical axis and bottles of cola are graphed along the horizontal axis, what is the slope of the budget line? A) 3
B) -3
C) 1/3
D) -1/3

Question 2

Which of the following leads to the demanders paying all of a tax?

A) The supply is unit elastic.
B) The supply is perfectly inelastic.
C) The demand is perfectly elastic.
D) The demand is perfectly inelastic.