The magnitude of the slope of the budget line is determined by
A) the consumer's preferences for the goods.
B) the level of income.
C) the marginal rate of substitution.
D) relative prices.

Question

Quizplus · Accepted Answer

The magnitude of the slope of the budget line is determined by the relative prices of the two goods in question. It represents the rate at which one good can be substituted for another while keeping the total cost constant.

The Magnitude of the Slope of the Budget Line Is