Which characterization is NOT applicable to the slope of the budget constraint
A)It shows the relative price of two goods.
B)It shows the rate at which a consumer can trade one good for another.
C)It is equal to the slope of the highest indifference curve.
D)It is constant.

Question

Quizplus · Accepted Answer

The slope of the budget constraint is not equal to the slope of the highest indifference curve. The budget constraint represents the trade-off between two goods based on their prices, while the indifference curve represents combinations of goods that provide the same level of utility to the consumer.

Which Characterization Is NOT Applicable to the Slope of the Budget