If the quantity of good A is on the vertical axis and the quantity of good B is on the horizontal axis, the slope of the corresponding isocost line is the:

Question

Quizplus · Accepted Answer

The slope of an isocost line represents the rate at which one good can be substituted for another while keeping the total cost constant. It is calculated as the negative of the price of good B divided by the price of good A, reflecting the trade-off between the goods within a given budget.

If the Quantity of Good a Is on the Vertical