Refer to the information provided in Figure 6.1 below to answer the question(s) that follow. Figure 6.1
-Refer to Figure 6.1. The slope of budget constraint AC is
A) -5.0.
B) -2.0.
C) -0.5.
D) indeterminate from this information because prices are not given.

Question

Refer to the information provided in Figure 6.1 below to answer the question(s) that follow.  Figure 6.1
-Refer to Figure 6.1. The slope of budget constraint AC is
A) -5.0. 
B) -2.0. 
C) -0.5. 
D) indeterminate from this information because prices are not given.

Quizplus · Accepted Answer

The slope of the budget constraint (line AC) is determined by the ratio of the prices of the two goods. It is calculated as the negative of the price of the good on the x-axis divided by the price of the good on the y-axis. Without seeing Figure 6.1, the correct answer cannot be directly determined from the provided options. However, assuming the question implies that the necessary information to determine the slope is available (e.g., through quantities at points A and C), and given the options, the correct answer would typically be calculated based on the context provided in the question. Since no specific details from Figure 6.1 are provided, the correct answer is chosen based on the standard approach to determining the slope of a budget constraint, which involves the prices of the goods.

Refer to the Information Provided in Figure 6