If the price of bread is zero and the price of cheese is positive, then the budget constraint between bread (on the horizontal axis) and cheese (on the vertical axis) would
A)be vertical.
B)coincide with the vertical axis.
C)coincide with the horizontal axis.
D)be horizontal.

Question

Quizplus · Accepted Answer

If the price of bread is zero, then the horizontal axis represents the amount of bread a consumer can get for free. The budget constraint would be a straight line along the vertical axis, indicating that the consumer can only purchase cheese with their budget. Therefore, the budget constraint would be horizontal.

If the Price of Bread Is Zero and the Price