If quantity of tea is measured on the horizontal axis and quantity of coffee is measured on the vertical axis, an increase in the price of coffee will cause the budget constraint to:
A) pivot leftward along the vertical axis.
B) pivot rightward along the vertical axis.
C) pivot leftward along the horizontal axis.
D) pivot rightward along the horizontal axis.
Question 2
During crisis periods, such as major snowstorms, the prices of basic goods, such as bread and milk rise. The price increases are clear evidence of
A) price gouging.
B) government regulation.
C) the market making it possible for the people who place the highest monetary value on bread and milk get bread and milk.
D) corruption.
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