The slope of the budget constraint line is:
a. the ratio of the prices (px/py).
b. the negative of the ratio of the prices (px/py).
c. the ratio of income divided by price of y (I/py).
d. none of the above.
b
Economics
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Firms rarely offer unlimited warranties on their products, because then their customers would be less careful with upkeep and maintenance. This situation is an example of
a. confiscation of rents. b. a speculative bubble. c. moral hazard. d. the principal-agent problem.
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