For an individual who consumes only two goods,X and Y,the opportunity cost of consuming one unit of X in terms of how much Y must be given up is reflected in
A)the individual's marginal rate of substitution.
B)the slope of the individual's budget constraint.
C)the slope of the individual's indifference curve.
D)None of the above.

Question

Quizplus · Accepted Answer

The opportunity cost of consuming one unit of X in terms of how much Y must be given up is reflected in the slope of the individual's budget constraint. The slope of the budget constraint represents the rate at which one good must be traded off for the other, which directly reflects the opportunity cost of consumption.

For an Individual Who Consumes Only Two Goods,X and Y,the