Author Question: The price of coffee is always equal to one-half the price of tea. When we plot the budget line for ... (Read 14 times)

penguins · **on:** Jul 1, 2018

The price of coffee is always equal to one-half the price of tea. When we plot the budget line for coffee and tea, coffee is plotted on the horizontal axis. What is the slope of this budget line?

A) -1/2
B) 1/2
C) -2
D) 2

Question 2

Refer to Figure 9.1. If the government establishes a price ceiling of 20, how many widgets will be sold?

A) 20
B) 30
C) 40
D) 50
E) 60