The figure above shows Sam's budget line. The magnitude of the slope of Sam's budget line is equal to the
A) quantity of coffee purchased divided by the quantity of gasoline purchased.
B) price of coffee divided by the price of gasoline.
C) quantity of gasoline purchased divided by the quantity of coffee purchased.
D) price of gasoline divided by the price of coffee.
B
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Refer to Table 9-12. If the actual terms of trade are 1 belt for 1.5 swords and 50 belts are traded, how many belts will Morocco consume?
A) 60 B) 70 C) 90 D) 120
"Ordinary least squares" is a technique that can be used to
A) identify the best model. B) determine which variables in a model are endogenous and which are exogenous. C) obtain a bar graph showing successive quarterly increases in output. D) obtain a line describing consumption behavior in the real world. E) determine the direction of causation between consumption and income.