Suppose a consumer spends her income on two goods: music CDs and DVDs. The price of a CD is $8, and the price of a DVD is $20 . If we graph the budget constraint by measuring the quantity of CDs purchased on the vertical axis and the quantity of DVDs on the horizontal axis, what is the slope of the budget constraint?
a. -5.0
b. -2.5
c. -0.4
d. The slope of the budget constraint cannot be determined without knowing the income the consumer has available to spend on the two goods.
b
Economics
You might also like to view...
Rational expectations represents a school of thought which claims that people form expectations solely based on all past information
Indicate whether the statement is true or false
Economics
If the supply of dollars in the market for foreign-currency exchange shifts left, then the exchange rate
a. rises and the quantity of dollars exchanged falls. b. rises and the quantity of dollars exchanged does not change. c. rises and the quantity of dollars exchanged rises. d. falls and the quantity of dollars exchanged does not change.
Economics