A consumer has $100 per day to spend on product A, which has a unit price of $7, and product B, which has a unit price of $15. What is the slope of the budget line if good A is on the horizontal axis and good B is on the vertical axis?
A) -7/15
B) -7/100
C) -15/7
D) 7/15

Question

Quizplus · Accepted Answer

The slope of the budget line is the negative of the ratio of the price of good A to the price of good B. In this case, the price of good A is $7 and the price of good B is $15, so the slope of the budget line is -7/15.

A Consumer Has $100 Per Day to Spend on Product