If good 1 is measured on the horizontal axis and good 2 is measured on the vertical axis and if the price of good 1 is p₁ and the price of good 2 is p₂, then the slope of the budget line is -p₂/p₁.

Question

Quizplus · Accepted Answer

The slope of the budget line is -p₁/p₂, representing the rate at which good 2 can be substituted for good 1 while staying within the budget.

If Good 1 Is Measured on the Horizontal Axis and Good