For a person who consumes only steak and lobster, the slope of the budget line is called the marginal rate of substitution between steak and lobster.

Question

Quizplus · Accepted Answer

The slope of the budget line represents the rate at which a consumer can trade one good for another while staying within their budget, not the marginal rate of substitution, which is the rate at which a consumer is willing to trade one good for another while maintaining the same level of utility.

For a Person Who Consumes Only Steak and Lobster, the Slope