A candy bar sells for 50 cents, video games are 25 cents each, the horizontal (candy)intercept of Ann's budget line is 12, and the vertical (video game)intercept of Ann's budget line is 24.The slope of the budget line is
A)-50
B)-25
C)-1/2
D)-2
E)-$120

Question

Quizplus · Accepted Answer

The slope of the budget line is calculated as the negative ratio of the price of the good on the horizontal axis to the price of the good on the vertical axis. Here, the price of candy bars is 50 cents and video games is 25 cents, so the slope is -50/25 = -2.

A Candy Bar Sells for 50 Cents, Video Games Are