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# Quiz2 - RUTGERS UNIVERSITY Department of Economics...

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RUTGERS UNIVERSITY Department of Economics Intermediate Microeconomics Analysis 01:220:320 Fall 2009 Instructor: Mriduchhanda Paul Quiz 2 1. Suppose the price of A is \$2, the price of B is \$3, and the consumer’s income is \$50. Which of the following baskets is not on the consumer’s budget line? a) 10, 10 A B = = . b) 4, 14 A B = = . c) 8, 11.33 A B = = . d) 5, 5 A B = = . Ans: D 2. Suppose the price of A is \$2, the price of B is \$3, and the consumer’s income is \$50. If A is plotted on the horizontal axis, the slope of the budget line is 3. Suppose the price of A is \$2 and the price of B is \$3 and that good A is plotted on the horizontal axis. If the price of A doubles and the price of B triples, leaving the consumer’s income unchanged, the budget line

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