-Lizzie's budget line is shown in the figure above. The relative price of a magazine is ________ per magazine.
A) 2 cookies
B) 0.5 of a cookie
C) $1
D) $2

Question

-Lizzie's budget line is shown in the figure above. The relative price of a magazine is ________ per magazine.
A) 2 cookies 
B) 0.5 of a cookie 
C) $1 
D) $2

Quizplus · Accepted Answer

The relative price of a magazine in terms of cookies is the slope of the budget line, which indicates how many cookies must be given up to obtain one more magazine. If the budget line shows that 2 cookies are given up for each additional magazine, the relative price is 2 cookies per magazine.

-Lizzie's Budget Line Is Shown in the Figure Above