The figures below show Chrisʹs consumption of specialty coffee per week.
FIGURE 6-10
-Refer to Figure 6-10. In general, the absolute value of the slope of the budget lines is equal to
A) the relative price ratio Pspecialty coffee/Pall other goods).
B) the relative price ratio Pall other goods/Pspecialty coffee).
C) the quantity of all other goods consumed divided by the quantity of specialty coffees consumed.
D) $15/value of all other goods.
E) the dollar value of all other goods divided by the number of specialty coffees consumed per week.

Question

The figures below show Chrisʹs consumption of specialty coffee per week.
  FIGURE 6-10
-Refer to Figure 6-10. In general, the absolute value of the slope of the budget lines is equal to
A) the relative price ratio Pspecialty coffee/Pall other goods). 
B) the relative price ratio Pall other goods/Pspecialty coffee). 
C) the quantity of all other goods consumed divided by the quantity of specialty coffees consumed. 
D) $15/value of all other goods. 
E) the dollar value of all other goods divided by the number of specialty coffees consumed per week.

Quizplus · Accepted Answer

The absolute value of the slope of the budget line represents the rate at which one good can be exchanged for another, which is the relative price ratio of the two goods.

The Figures Below Show Chrisʹs Consumption of Specialty Coffee Per