With a composite good on the vertical axis,the slope of the budget line is _____.
A)the price of the composite good
B)- 1
C)the price of the good on the horizontal axis
D)0

Question

Quizplus · Accepted Answer

The slope of the budget line represents the rate at which an individual can trade one good for another while maintaining a constant level of utility. In this case, with a composite good on the vertical axis, the price of the good on the horizontal axis is represented by the slope of the budget line. Therefore, the correct answer is C - the price of the good on the horizontal axis.

With a Composite Good on the Vertical Axis,the Slope of the Budget