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Suppose Jack�s budget line is as shown on the diagram above. Ceteris.pdf

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atulgovil3

Jacks budget line shows his preferences between Coke and popcorn. If his preferences change to favor Coke more and popcorn less, keeping all else equal, his budget line will become steeper, showing he can obtain less popcorn for the same amount of Coke or more Coke for the same amount of popcorn.

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Suppose Jacks budget line is as shown on the diagram above. Ceteris paribus, if his preferences change in favor of Coke and against popcorn, the budget line will Select one: a. become steeper b. become flatter c. shift parallel rightward d. shift parallel leftward e. will not change

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