Your budget constraint for the two goods A and B is 8A + 4B = I, where I is your income. You are currently consuming more than 18 units of B. In order to get 3 more units of A, how many units of B would you have to give up?
A) 6
B) 0.50
C) 0.17
D) 2
E) None of the above.

Question

Quizplus · Accepted Answer

To get 3 more units of A, you would have to give up 6 units of B. This is because the slope of the budget constraint is -8/4 = -2, which means that for every 1 unit of A you consume, you must give up 2 units of B.

Your Budget Constraint for the Two Goods a and B