Good Y is measured on the vertical axis and good X on the horizontal axis.If the price of Y is zero,the price of X is $10,and the consumer's income $100,the budget line:
A)would coincide with the vertical axis.
B)would be horizontal at $10 on the Y axis.
C)would be vertical at 10 units on the X axis.
D)would coincide with the horizontal axis.

Question

Quizplus · Accepted Answer

If the price of Y is zero, then the entire budget of $100 can be spent on purchasing good X. Therefore, the budget line would be vertical at 10 units on the X axis.

Good Y Is Measured on the Vertical Axis and Good