The magnitude of the slope of the budget line
A) is defined as marginal rate of substitution.
B) equals the relative price of the good measured along the horizontal axis.
C) increases when income increases.
D) decreases when income increases.

Question

Quizplus · Accepted Answer

The magnitude of the slope of the budget line equals the relative price of the good measured along the horizontal axis.

The Magnitude of the Slope of the Budget Line