Use the following to answer questions :
Scenario: Tom's Budget Constraint
Tom is trying to decide how to allocate his $50 budget for music downloads and online movie streaming when the price of a music download is $1 and the price of a movie is $5.
-(Scenario: Tom's Budget Constraint) Use Scenario: Tom's Budget Constraint.If we place music downloads on the horizontal axis and movies on the vertical axis,the slope of Tom's budget line is:
A) -10.
B) -1/5.
C) -2.
D) -1/2.
Correct Answer:
Verified
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Figure:
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Figure:
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A)marginal
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