Question: your budget line for goods a and b is represented...
Your budget line for goods A
and B is represented below. Which of the following statements is or
could be TRUE?
(a) If income is $45, the price of Good A must always be $5.
(b) The price of Good A increases after the consumer buys 2 units.
(c) When you have 5 units of Good A, you are able to buy an additional unit of Good A if you give up 1/3 units of Good B.
(d) When you have 5 units of good B, the marginal rate of transformation of A for B is 1/3 (𝑀𝑅𝑇ab = 1/3)
(e) All of the above statements are false.