If all consumers are price-takers facing the same prices, then their budget lines will all have the same slope.

Name: If all consumers are price-takers facing the same prices, then their budget lines will all have the same slope.
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Question

Quizplus · Accepted Answer

If all consumers are facing the same prices, then their relative prices for goods will be the same. Therefore, their budget lines will all have the same slope, which represents the ratio of prices of the goods they can buy with their budget.

If All Consumers Are Price-Takers Facing the Same Prices, Then