What is the relationship between the slope of the budget line to the notion of opportunity cost?

Question

Quizplus · Accepted Answer

The Answer is The slope of the budget line represents the opportunity cost of one good in terms of the other. Suppose we have two goods: fish and chips. If the price of fish (Pf) is $2 and the price of chips (Pc) is $8, then the price ratio -Pc/Pf = -8/2 = -4. This means that if I want one more unit of chips, I have to give up 4 more units of fish. So the opportunity cost of 1 unit of chips is given by the slope, -4, in terms of the number of fish that has to be given up.

What Is the Relationship Between the Slope of the Budget