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Save this response. Question 19 Question 19 of 39 A figure shows a consumer's budget constraint for apples (vertical axis) and oranges (horizontal axis). If the price of apple increases, how is the budget constraint affected? (NOTE: A "shift" implies all points move either outward or inward). 2.5 points Save Ar A. The budget constraint shifts parallel outward. B. The vertical intercept E decreases and the horizontal intercept F remains the same, making the budget constraint flatter. c. The vertical intercept E is unchanged and the horizontal intercept F decreases, making the budget constraint steeper. D. The budget constraint shifts parallel inward. E. The budget constraint does not change. L A Moving to another question will save this response. Question 19 of 39 Question 10 of 39 Question 10 12 points Save Answer The local city government is deciding whether to tear down houses in a run-down neighborhood to build a park. The park would have no user fee, but the city does need to assess the demand for such a park. After a poll, twenty, people indicated that their demand could be represented by the demand equation P-100 - 30*Q where P is the demand price, or most they a would pay for the last unit of park facility - in effect, their Marginal Benefit from the final unit. Also thirty people indicated that their demand could be represented by P = 200-30*Q and forty_had demand price or marginal benefit of P = 300 -30*Q. The MC (Marginal Cost) per torn-down house is estimated to be $3,800. (a) Calculate the Demand for this public good (that is, the equation for Social Marginal benefit). (b) Solve for the optimal size of the park (how many houses to tear down). For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I y S Paragraph Arial v V 10pt