The following diagram shows a budget constraint for a particular consumer.
If the price of X is $5,what is the price of Y?
A) $2
B) $10
C) $30
D) $300

Question

The following diagram shows a budget constraint for a particular consumer. 
If the price of X is $5,what is the price of Y?
A) $2 
B) $10 
C) $30 
D) $300

Quizplus · Accepted Answer

The slope of the budget constraint is -5, which represents the price ratio of X and Y. Therefore, the price of Y is $10. The best choice for the consumer would be any point on the budget constraint that maximizes utility. This would depend on the consumer's preferences and the specific prices of X and Y.

The Following Diagram Shows a Budget Constraint for a Particular