The slope of the budget line always equals the consumer's marginal value.

Name: The slope of the budget line always equals the consumer's marginal value.
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Question

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The slope of the budget line represents the ratio of the prices of the two goods. The consumer's marginal value is the additional utility gained from consuming an extra unit of a good, which may or may not equal the price ratio.

The Slope of the Budget Line Always Equals the Consumer's