-sume we are measuring coffee on the horizontal axis and flowers on the vertical axis. The government introduces a tax on coffee consumed beyond C units. What will happen the budget constraint? The budget constraint will become kinked at C" units of coffee and will have a flatter slope at units beyond C". The budget constraint will pivot inwards around the horizontal intercept. O The budget constraint will pivot outwards around the vertical intercept. O The budget constraint will shift outwards and become steeper. O The budget constraint will become kinked at C* units of coffee and will have a steeper slope at units beyond Cº. O No answer.
-sume we are measuring coffee on the horizontal axis and flowers on the vertical axis. The government introduces a tax on coffee consumed beyond C units. What will happen the budget constraint? The budget constraint will become kinked at C" units of coffee and will have a flatter slope at units beyond C". The budget constraint will pivot inwards around the horizontal intercept. O The budget constraint will pivot outwards around the vertical intercept. O The budget constraint will shift outwards and become steeper. O The budget constraint will become kinked at C* units of coffee and will have a steeper slope at units beyond Cº. O No answer.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
Problem 2SQP
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![301 15
Assume we are measuring coffee on the horizontal axis and flowers on the vertical axis. The government introduces a tax on coffee consumed beyond C units. What will happen
to the budget constraint?
O The budget constraint will become kinked at C* units of coffee and will have
O The budget constraint will pivot inwards around the horizontal intercept.
O The budget constraint will pivot outwards around the vertical intercept.
O The budget constraint will shift outwards and become steeper.
O The budget constraint will become kinked at C* units of coffee and will have
O No answer.
flatter slope at units beyond Cº.
steeper slope at units beyond C.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F445ba0c8-dcf5-46fe-b747-95708161eed1%2F61537649-65d2-42e0-911e-2b4f6a03e318%2F0ri4nws_processed.jpeg&w=3840&q=75)
Transcribed Image Text:301 15
Assume we are measuring coffee on the horizontal axis and flowers on the vertical axis. The government introduces a tax on coffee consumed beyond C units. What will happen
to the budget constraint?
O The budget constraint will become kinked at C* units of coffee and will have
O The budget constraint will pivot inwards around the horizontal intercept.
O The budget constraint will pivot outwards around the vertical intercept.
O The budget constraint will shift outwards and become steeper.
O The budget constraint will become kinked at C* units of coffee and will have
O No answer.
flatter slope at units beyond Cº.
steeper slope at units beyond C.
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