Figure 21-5

-Refer to Figure 21-5.In graph (b) ,what is the price of good X relative to good Y (i.e. ,P_x/P_y) ?

Name: Figure 21-5 -Refer to Figure 21-5.In graph (b),what is the price of good X relative to good Y (i.e. ,P x /P y )? A) 1/3 B) 1 C) 3 D) 10
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Question

Figure 21-5 -Refer to Figure 21-5.In graph (b),what is the price of good X relative to good Y (i.e. ,P_x/P_y)? A) 1/3 B) 1 C) 3 D) 10

Quizplus · Accepted Answer

The price of good X relative to good Y is 1/3 because the slope of the budget line is -1/3. The slope of the budget line is equal to the ratio of the prices of the two goods, so P_x/P_y = -1/3.

Figure 21-5 -Refer to Figure 21-5.In Graph (B),what Is the Price of the Price