Sue consumes oysters and clams.Pounds of oysters are measured on the y-axis and pounds of clams on the x-axis.If the slope of Sue's budget line is 5 pounds of oysters per pound of clams,Sue must
A) give up 5 pounds of clams to obtain 1 pound of oysters.
B) give up 5 pounds of oysters to obtain 1 pound of clams.
C) pay $5 for a pound of clams only.
D) pay $5 for a pound of oysters only.
E) pay $5 for a pound of clams and pay $5 for a pound of oysters.

Question

Quizplus · Accepted Answer

The slope of the budget line indicates the rate at which Sue can trade one good (clams) for another good (oysters) while staying within her budget constraint.

In this case, the slope of the budget line is 5 pounds of oysters per pound of clams. This means that for every 1 pound of clams Sue gives up, she can obtain 5 pounds of oysters.

Therefore, the correct choice is B: Sue must give up 5 pounds of clams to obtain 1 pound of oysters.

Sue Consumes Oysters and Clams