Ron spends $150 on movie tickets and pizza. The price of a pizza is $10 and a movie ticket is $7.50. With the quantity of movies measured along the vertical axis, the slope of Ron's budget line (with movies on the vertical axis) is ________ per pizza

Question

Quizplus · Accepted Answer

The slope of the budget line is the negative ratio of the price of the good on the horizontal axis (pizza) to the price of the good on the vertical axis (movies). Thus, the slope is -$10/$7.50 = -1.33 movies per pizza.

Ron Spends $150 on Movie Tickets and Pizza