Figure 21-3

-Refer to Figure 21-3.In graph (b),what is the price of good X relative to good Y (i.e.,PX/PY)
A)1/4
B)1/3
C)3/4
D)3/1

Name: Figure 21-3 -Refer to Figure 21-3.In graph (b),what is the price of good X relative to good Y (i.e.,PX/PY) A)1/4 B)1/3 C)3/4 D)3/1
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Question

Figure 21-3
 
-Refer to Figure 21-3.In graph (b),what is the price of good X relative to good Y (i.e.,PX/PY)
A)1/4 
B)1/3 
C)3/4 
D)3/1

Quizplus · Accepted Answer

The price of good X relative to good Y (PX/PY) is determined by the slope of the budget line in graph (b). If the slope is 1/3, it means that for every unit of good Y, you can get 1/3 unit of good X, indicating PX/PY = 1/3.

Figure 21-3 -Refer to Figure 21-3.In Graph (B),what Is the Price of Is