The slope of a budget constraint:
A)represents the opportunity cost of the two goods relative to each other.
B)represents the relative marginal utilities from consuming the two goods.
C)measures the total utility the consumer gets from consuming the two goods.
D)is the consumer's income level.

Question

Quizplus · Accepted Answer

The slope of a budget constraint represents the opportunity cost of one good in terms of the other, indicating how much of one good must be given up to obtain one more unit of the other good.

The Slope of a Budget Constraint