The slope of the budget constraint is all of the following except
A) the relative price of two goods.
B) the rate at which a consumer can trade one good for another.
C) the marginal rate of substitution.
D) constant.

Question

Quizplus · Accepted Answer

The slope of the budget constraint represents the relative price of two goods and the rate at which a consumer can trade one good for another, and it is constant. The marginal rate of substitution, however, refers to the rate at which a consumer is willing to trade one good for another, which is not necessarily constant and is not the same as the slope of the budget constraint.

The Slope of the Budget Constraint Is All of the Following