If a consumer purchases two goods,food (measured along the axis) and housing (measured along the axis),and if the price of food is $3 per unit and the price of housing is $400 per unit,then what is the slope of the consumer's budget constraint if the consumer has an income of $600?

Question

If a consumer purchases two goods,food (measured along the  axis) and housing (measured along the  axis),and if the price of food is $3 per unit and the price of housing is $400 per unit,then what is the slope of the consumer's budget constraint if the consumer has an income of $600?

Quizplus · Accepted Answer

The consumer's budget equation can be written as 3F + 400H = 600, where F is the quantity of food and H is the quantity of housing. Solving for H, we get H = (600 - 3F)/400. The slope of the budget constraint is the ratio of the change in the quantity of housing to the change in the quantity of food, which can be expressed as:
slope = ΔH/ΔF = (-3/400)
Therefore, the answer is B: -3/400.

If a Consumer Purchases Two Goods,food (Measured Along the