-The above figure gives your budget line between CDs and magazines. The slope of the budget line is ________ CD per magazine.
A) 1/2
B) -1/2
C) -1
D) -2

Question

-The above figure gives your budget line between CDs and magazines. The slope of the budget line is ________ CD per magazine.
A) 1/2 
B) -1/2 
C) -1 
D) -2

Quizplus · Accepted Answer

The slope of a budget line is calculated as the negative of the price ratio of the two goods. If the slope is given as -1/2, it means that for every additional magazine purchased, you give up 1/2 of a CD.

-The Above Figure Gives Your Budget Line Between CDs and Magazines