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The figure below shows the typical American consumer's budget line between soda and juice, The consumer has $100.00 to spend, The price per bottle of
The figure below shows the typical American consumer's budget line between soda and juice, The consumer has $100.00 to spend, The price per bottle of juice is $1.00, and the price per can of soda is $1.33. -Juke (In bottles) If Congress imposes a per-can tax of $0.05 on soda, the price per can of soda will increase ceteris paribus. As a result of this Increase in the per-can price of soda, O the budget line will become flatter in the graph, increasing the consumer's opportunity cost of buying a can of soda, O the budget line will become steeper in the graph, decreasing the consumer's opportunity cost of buying a can of soda. O the consumer's budget line will shift to the left with no change in the opportunity cost of buying a can of soda. there will be no change in the consumer's budget line
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