Solved

The Absolute Value of the Slope of the Budget Constraint

Question 270

Multiple Choice
The absolute value of the slope of the budget constraint is equal to A)the marginal rate of substitution between the two goods in question. B)the price of good on the vertical axis divided by the price of the good on the horizontal axis. C)the price of good on the horizontal axis divided by the price of the good on the vertical axis. D)the quantity of the good on the vertical axis divided by the quantity of the good on the horizontal axis.

The absolute value of the slope of the budget constraint is equal to


A) the marginal rate of substitution between the two goods in question.
B) the price of good on the vertical axis divided by the price of the good on the horizontal axis.
C) the price of good on the horizontal axis divided by the price of the good on the vertical axis.
D) the quantity of the good on the vertical axis divided by the quantity of the good on the horizontal axis.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q265: Suppose the consumer's income increases while the

Q266: Which of the following is held constant

Q267: Figure 10-7
Figure 10-7 </p></div><svg width=

Q268: A consumer's utility-maximizing combination of goods is

Q269: The slope of the indifference curve is

Q271: Figure 10-8
Figure 10-8 </p></div><svg width=

Q272: Figure 10-7
Figure 10-7 </p></div><svg width=

Q273: Figure 10-7
Figure 10-7 </p></div><svg width=

Q274: What does the marginal rate of substitution

Q275: Figure 10-8
Figure 10-8 </p></div><svg width=

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents