7. Shifts in a budget constraintVan brings $20 to a baseball game to spend on sodas and pizza. The following diagram shows his budget constraint:(?10BC7621BC1.2345678910SODASAccording to the diagram, sodas cost $each, and pizza costs $per slice.Adjust the diagram to show how Van's budget constraint would change if he had brought more money to the ballpark. (Assume the prices of sodasand pizza remain the same.)SLICES OF PIZZA

In economics, a budget constraint represents all the combinations of goods and services that a…

Answered: 7. Shifts in a budget constraint Van…

7. Shifts in a budget constraint Van brings $20 to a baseball game to spend on sodas and pizza. The following diagram shows his budget constraint:

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 1QR

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Question

7. Shifts in a budget constraint
Van brings $20 to a baseball game to spend on sodas and pizza. The following diagram shows his budget constraint:
(?
10
BC
7
6
2
1
BC
1.
2
3
4
5
6
7
8
9
10
SODAS
According to the diagram, sodas cost $
each, and pizza costs $
per slice.
Adjust the diagram to show how Van's budget constraint would change if he had brought more money to the ballpark. (Assume the prices of sodas
and pizza remain the same.)
SLICES OF PIZZA

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