If the relative price of a concert ticket is 3 times the price of a meal at a good restaurant,then the opportunity cost of a concert ticket can be measured by the
A)slope of the budget constraint.
B)slope of an indifference curve.
C)marginal rate of substitution.
D)income effect.

Question

Quizplus · Accepted Answer

The opportunity cost of a concert ticket in terms of meals is represented by the slope of the budget constraint, which shows the trade-off between the two goods.

If the Relative Price of a Concert Ticket Is 3