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In this section, consider a consumer who cares about two items: apples and bus rides. Their weekly income is $100 and the price of an
In this section, consider a consumer who cares about two items: apples and bus rides. Their weekly income is $100 and the price of an apple is $1 while the price of the bus is $2. Draw the agent's budget constraint (draw apples on the x-axis and bus rides on the y-axis), and provide an answer to the following scenarios: 8. Suppose that the price of a bus ride increases to $4, what is the effect on the slope of the budget constraint? (1 point) (a) Decreases; the line looks flatter. (b) Increases; the line looks steeper. (c) The slope remains the same, but the line is always further from the origin. (d) None, the slope remains the same. 9. Suppose that the consumer wins the lott
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