Figure 21-5

-Refer to Figure 21-5.In graph (a),what is the price of good Y relative to good X (i.e.,Pᵧ/Pₓ)?
A) 1/4
B) 1/3
C) 3
D) 4

Question

Figure 21-5

-Refer to Figure 21-5.In graph (a),what is the price of good Y relative to good X (i.e.,Pᵧ/Pₓ)?
A) 1/4 
B) 1/3 
C) 3 
D) 4

Quizplus · Accepted Answer

In graph (a), the price of good Y relative to good X (i.e., Pᵧ/Pₓ) is 1/4. This is because the slope of the budget line is -1/4, which means that for every 1 unit of good X that is purchased, 1/4 unit of good Y can be purchased.

Figure 21-5 -Refer to Figure 21-5.In Graph (A),what Is the Price of 21-5.In