What does the slope of the line shown in the above figure equal?
What will be an ideal response?
The slope equals the change in variable on the y-axis divided by the change in the variable on the x-axis, or (150 - 300 )/(600 - 800 ) = 0.75.
You might also like to view...
Bart and Lisa are both optimizing consumers in the markets for shirts and hats, where they pay $100 for a shirt and $50 for a hat. Bart buys 8 shirts and 4 hats, while Lisa buys 6 shirts and 12 hats. From this information, we can infer that Bart's marginal rate of substitution is _____ hats per shirt, while Lisa's is _____.
a. 4, 2 b. 2, 1 c. 2, 2 d. 4, 1
Assume the market for beef is perfectly competitive. Beef producers are currently earning a zero economic profit. If consumers switch from chicken to beef, which of the following is most likely to occur?
A. Beef producers will now earn economic losses in the short run, and there will be no additional adjustments in the long run. B. Beef producers will now incur economic profits in both the short run and the long run. C. Beef producers will incur economic profits in the short run. Some producers will enter the industry until all firms in the industry are earning a zero economic profit. D. Beef producers will incur economic profits in the short run. Some producers will enter the industry as long as all firms in the industry are earning an economic profit.