The slope of the budget constraint is determined by the:
A) relative price of commodities represented on the axis
B) level of income of the consumer
C) preferences of a consumer
D) endowment of productive resources

Question

Quizplus · Accepted Answer

The slope of the budget constraint is determined by the relative price of the two commodities represented on the axis. In other words, it shows the rate at which one good can be exchanged for the other. The level of income, preferences, and endowment of resources all affect the position of the budget constraint, but not the slope.

The Slope of the Budget Constraint Is Determined by The