Consider two goods,books and hamburgers.The slope of the consumer's budget constraint is measured by the
A) consumer's income divided by the price of hamburgers.
B) relative price of books and hamburgers.
C) consumer's marginal rate of substitution.
D) number of books purchased divided by the number of hamburgers purchased.

Question

Quizplus · Accepted Answer

The slope of the consumer's budget constraint is measured by the relative price of books and hamburgers. It represents the trade-off between the two goods and how much of one must be given up to obtain another.

Consider Two Goods,books and Hamburgers