Suppose the only two goods that Lorenzo consumes are wine and cheese. When wine sells for $10 a bottle and cheese sell for $10 a pound, he buys 6 bottles of wine and 4 pounds of cheese — spending his entire income of $100 . One day the price of wine falls to $5 a bottle, and the price of cheese increases to $20 a pound, while his income does not change. If you illustrate wine on the vertical

axis and cheese on the horizontal axis, then
a. the slope of Lorenzo's budget has not changed.
b. the slope of Lorenzo's budget constraint is flatter at the new prices.
c. the slope of Lorenzo's budget constraint is steeper at the new prices.
d. Lorenzo's budget constraint has shifted in a parallel fashion to the budget constraint with the old prices.

c