The figures below show Chris's consumption of specialty coffee per week. FIGURE 6- 9
-Refer to Figure 6- 9. The absolute value of the slope of the budget lines is equal to , which reflects the of specialty coffees in terms of all other goods.
A) the relative price ratio (Pall other goods/Pspecialty coffee); demand
B) the dollar value of all other goods divided by the number of specialty coffees consumed per week; demand
C) the quantity of all other goods consumed divided by the quantity of specialty coffees consumed; quantity
D) $15/value of all other goods; opportunity cost
E) the relative price ratio (Pspecialty coffee/Pall other goods); opportunity cost

Question

The figures below show Chris's consumption of specialty coffee per week.  FIGURE 6- 9
-Refer to Figure 6- 9. The absolute value of the slope of the budget lines is equal to , which reflects the of specialty coffees in terms of all other goods.
A) the relative price ratio (Pall other goods/Pspecialty coffee); demand 
B) the dollar value of all other goods divided by the number of specialty coffees consumed per week; demand 
C) the quantity of all other goods consumed divided by the quantity of specialty coffees consumed; quantity 
D) $15/value of all other goods; opportunity cost 
E) the relative price ratio (Pspecialty coffee/Pall other goods); opportunity cost

Quizplus · Accepted Answer

The absolute value of the slope of the budget lines represents the opportunity cost of consuming specialty coffee in terms of all other goods. Therefore, the answer must involve the concept of opportunity cost. Option E presents the relative price ratio of specialty coffee to all other goods, which is the opportunity cost of consuming one more unit of specialty coffee. Therefore, E is the correct choice.

The Figures Below Show Chris's Consumption of Specialty Coffee Per