1. If the price of x triples and the price of y doubles, then the budget line becomes steeper. True or False?
2. The price of bread is $7.5 per kilogram, and the price of butter is $5 per kilogram. Rupert buys 12 kilograms of bread, and his income is $120. How much butter does he buy, assuming that he consumes nothing else than butter and bread? No unit, no rounding.
3. Alan can spend $10 a week on snacks. He likes ice cream, which cost $1 per scoop, and popcorn, which costs 40 cents per bag. All of a sudden, however, his sister Alice starts stealing half of his popcorn every time he buys any. Which of the following statements is true about Alan's budget constraint in a diagram with popcorn on the x-axis?
- It makes a parallel shift outward.
- It rotates around the intercept on the y-axis.
- It rotates around the intercept on the x-axis.
- It makes a parallel shift inward.