Consider budget constraints A and B in the graph shown.The slope of A compared to the slope of B:
A)is steeper,showing that movie tickets are relatively more expensive in line A.
B)is flatter,showing that books are relatively less expensive in line A.
C)shows that the opportunity cost of books is smaller in line A.
D)shows that the opportunity cost of books is greater in line A.

Question

Consider budget constraints A and B in the graph shown.The slope of A compared to the slope of B:
A)is steeper,showing that movie tickets are relatively more expensive in line A. 
B)is flatter,showing that books are relatively less expensive in line A. 
C)shows that the opportunity cost of books is smaller in line A. 
D)shows that the opportunity cost of books is greater in line A.

Quizplus · Accepted Answer

The slope of A compared to the slope of B shows that the opportunity cost of books is greater in line A. This is because in order to purchase one book, more movie tickets have to be given up in line A compared to line B. Therefore, the budget constraint A represents a higher opportunity cost of books relative to movie tickets.

Consider Budget Constraints a and B in the Graph Shown