7-21
65.
Assume Willow’s income to spend on either earrings or hairbands is $24. If her budget constraint is
pictured in the graph shown, which of the following must be true?
7-22
66.
Assume the graph shown shows Bobbi’s budget constraint. If hairbands cost $5, then Bobbi‘s income to
spend on these two items must be:
67.
Assume Mimi’s budget constraint is shown in the graph shown. If earrings cost $7, then hairbands must
cost:
68.
Assume Bridget’s budget constraint is shown in the graph shown. If she has $48 to spend on these two
items, then earrings must cost:
7-24
69.
Assume Bonnie has $64 to spend on hairbands and earrings. Her budget constraint is shown in the graph
shown. Which of the following can be said about Bonnie’s choices?
70.
7-25
Assume Bill’s income to spend on the two goods in the graph shown is $48, and movie tickets cost $8. If
Bill’s budget constraint is one of the lines in the graph, which one must it be?
71.
Assume Kevin’s income to spend on the two goods in the graph shown is $48, and books cost $12. If
Kevin’s budget constraint is one of the lines in the graph, which one must it be?
7-26
72.
Assume Kara’s budget constraint is represented by line A in the graph shown, and that her income to
spend on these two items is $24. What would cause her budget constraint to move to B?
73.
Assume Roger’s income to spend on books and movie tickets is $48, and his budget constraint is
represented by line B. What would cause his budget constraint to move to A?
74.
Assume Alan’s budget constraint is demonstrated by line A in the graph shown. Which of the following
could cause Alan’s budget constraint to change to line B?
7-28
75.
Assume Alan’s budget constraint is demonstrated by line A in the graph shown. Which of the following
could cause Alan’s budget constraint to change to line B?
76.
Assume Claudia’s budget constraint is demonstrated by line A in the graph shown. Which of the following
would cause Claudia’s budget constraint to shift to line C?
77.
Assume Claudia’s budget constraint is demonstrated by line A in the graph shown. Which of the following
would cause Claudia’s budget constraint to shift to line C?
7-30
78.
Assume Bryce’s budget constraint is represented by line B in the graph shown. Which of the following
would cause Bryce’s budget constraint to shift to A?
79.
Assume Bryce’s budget constraint is represented by line C in the graph shown. Which of the following
would cause Bryce’s budget constraint to shift to A?
80. This graph shows three different budget constraints: A, B, and C.
If Don has budget constraint C in the graph shown, what is the trade-off he faces in terms of the two
goods?
7-32
81. This graph shows three different budget constraints: A, B, and C.
If Gary has budget constraint A, and the price of milk is $3 a gallon, what is Gary’s income?
82. This graph shows three different budget constraints: A, B, and C.
7-33
If Doug is on budget constraint C in the graph shown, what would cause it to shift to budget constraint B?
83. This graph shows three different budget constraints: A, B, and C.
7-34
If Daniel has budget constraint C in the graph shown, what would cause it to shift to budget constraint B?
84. This graph shows three different budget constraints: A, B, and C.
7-35
If Larry has budget constraint B in the graph shown, what is his opportunity cost of one gallon of milk?
85. This graph shows three different budget constraints: A, B, and C.
7-36
If we compare budget constraint A to budget constraint B in the graph shown, what can be said of the
relative prices reflected in the two?
86. This graph shows three different budget constraints: A, B, and C.
If Bert has budget constraint A in the graph shown, what is his opportunity cost of three gallons of milk?
87. This graph shows three different budget constraints: A, B, and C.