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Homer buys pizza for $10 and Pepsi for $2. He has income of $100. His budget constraint will shift inward if a. the price of pizza rises to $12. b. the price of Pepsi falls to $1. c. his income rises to $150. d. the price of pizza, the price of Pepsi, and his income all rise by 50 percent.
Chapter 21, Problem 1(choose chapter or problem)
QUESTION: Homer buys pizza for $10 and Pepsi for $2. He has income of $100. His budget constraint will shift inward ifa. the price of pizza rises to $12.b. the price of Pepsi falls to $1.c. his income rises to $150.d. the price of pizza, the price of Pepsi, and his income all rise by 50 percent.
Questions & Answers
QUESTION: Homer buys pizza for $10 and Pepsi for $2. He has income of $100. His budget constraint will shift inward ifa. the price of pizza rises to $12.b. the price of Pepsi falls to $1.c. his income rises to $150.d. the price of pizza, the price of Pepsi, and his income all rise by 50 percent.
ANSWER:Step 1 of 2
Given data:
Homer buys pizza for $10 and Pepsi for $2. He has an income of $100.