6. The consumer's optimal consumption bundle is at the point where:

a) the slope of the indifference curve equals the slope of the budget line.

b) the indifference curve intersects the budget line.

c) the ratio of the total utilities of the goods equals the ratio of the prices of the goods.

d) the marginal utility of each good is maximized.

7. Consider a graph with hamburger on the X-axis and cheese crackers on the Y-axis. The outbreak of mad cow disease, which will change the price of hamburgers, will:

a) not change the slope of the budget line.

b) lead to a parallel shift of the budget line depending on the change in price.

c) change the y-intercept of the budget line.

d) change the x-intercept of the budget line.

8. Suppose initially that the price of X is $5, the price of Y is $10, and the consumer's income is $100. If Y is measured on the vertical axis, X is measured on the horizontal axis, and the price of Y increases to $20:

a) the entire budget line will shift inward toward the origin, with its slope changing from -1/2 to -1/4.

b) the budget line will pivot inward toward the origin along the X axis, with its slope changing from -1/2 to -1/4.

c) the budget line will pivot inward toward the origin along the Y axis, with the slope changing from -1/2 to -1/4.

d) the budget line will pivot inward toward the origin along the Y axis, with the slope changing from -1/4 to -1/2.