-The figure above shows Ronald's budget line. He has a weekly income of $20 and he spends it on hot dogs and hamburgers. The relative price of a hamburger is ________.
A) 1/2 hot dog
B) 5 hot dogs
C) $20
D) 2 hot dogs

Question

-The figure above shows Ronald's budget line. He has a weekly income of $20 and he spends it on hot dogs and hamburgers. The relative price of a hamburger is ________.
A) 1/2 hot dog 
B) 5 hot dogs 
C) $20 
D) 2 hot dogs

Quizplus · Accepted Answer

The relative price of a hamburger is 1/2 hot dog because the slope of the budget line is -1/2. This means that for every 1 hot dog Ronald gives up, he can get 2 hamburgers.

-The Figure Above Shows Ronald's Budget Line