SOLVED

41) The number of pizza slices is plotted on the horizontal axis and number of hot dogs is plotted on the vertical axis. If the price of a hot dog rises, the A) x-intercept and the slope of the budget line increase. B) y-intercept and the slope of the budget line increase. C) x-intercept and the slope of the budget line decrease. D) y-intercept decreases and the slope of the budget line does not change. E) y-intercept and the slope of the budget line decrease. 42) Sam buys gasoline and coffee each week. To draw his budget line for gasoline and coffee, Sam needs to know A) how much income he has to spend on gasoline and coffee, the price of a litre of gasoline, and the price of a cup of coffee. B) only the price of a litre of gasoline and the price of a cup of coffee. C) only how much coffee he wants to drink and how much gasoline he needs. D) only how much income he has to spend on coffee and gasoline. E) his preferences for gasoline and coffee. 43) Moving down along a given budget line, real income A) decreases but prices remain constant. B) and prices are constant. C) decreases and prices decrease. D) increases but prices remain constant. E) remains constant but prices decrease. 44) Tonya, who is wealthy, and Jerome, who is not, both buy orange juice and croissants for lunch at the student cafeteria. Their budget lines are drawn with orange juice on the vertical axis and croissants on the horizontal axis. Choose the correct statement. A) Both of these budget lines have the same y-axis intercepts. B) Both of these budget lines have the same x-axis intercepts. C) Both of these budget lines have the same slopes. D) Both of these budget lines have the same y-axis intercepts and x-axis intercepts. E) These budget lines have different slopes, different x-axis intercepts, and different y-axis intercepts. 45) A rise in the price of gasoline, everything else remaining the same, ________ the relative price of a restaurant meal and ________ real income in terms of restaurant meals. A) increases; does not change B) does not change; decreases C) decreases; does not change D) does not change; increases E) decreases; decreases  Â