If the graph shown represents Suzi's budget constraint,what can be said about hairbands?
A) They cost twice as much as earrings.
B) They cost half as much as earrings.
C) Suzi likes hairbands more than earrings.
D) Suzi is willing to pay twice as much for hairbands.

Question

If the graph shown represents Suzi's budget constraint,what can be said about hairbands?
A) They cost twice as much as earrings. 
B) They cost half as much as earrings. 
C) Suzi likes hairbands more than earrings. 
D) Suzi is willing to pay twice as much for hairbands.

Quizplus · Accepted Answer

The slope of the budget constraint line represents the price ratio between the two goods. In this case, the slope is -2, meaning that the price of earrings (on the y-axis) is twice as high as the price of hairbands (on the x-axis). Therefore, option B is the correct answer.

If the Graph Shown Represents Suzi's Budget Constraint,what Can Be