The slope of the budget constraint is all of the following except
A)the relative price of two goods.
B)the rate at which a consumer can afford to trade one good for another.
C)the marginal rate of substitution.
D)constant.

Question

Quizplus · Accepted Answer

The slope of the budget constraint represents the relative price of two goods and is constant, indicating the rate at which a consumer can trade one good for another. The marginal rate of substitution, however, refers to the rate at which a consumer is willing to trade one good for another, which is not necessarily constant.

The Slope of the Budget Constraint Is All of the Following