The income of a consumer is $40, the price of A is $2, and the price of B is $6. If the quantity of A is measured vertically, then the slope of the budget line is
A)-3.0.
B)-0.5.
C)-0.33.
D)-2.5.

Question

Quizplus · Accepted Answer

The slope of the budget line is calculated by dividing the negative of the price of the good on the x-axis (B) by the price of the good on the y-axis (A). Thus, the slope = -($6/$2) = -3.0.

The Income of a Consumer Is $40, the Price of a Is