The Income of a Consumer Is $40, the Price of a Is

question 327

Multiple Choice

The income of a consumer is $40, the price of A is $2, and the price of B is $6. If the quantity of A is measured vertically, then the slope of the budget line is

• A)-3.0.
• B)-0.5.
• C)-0.33.
• D)-2.5.

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Definitions:

Price of Apples

The amount of money required to purchase a unit or specific quantity of apples, often influenced by factors such as supply, demand, and production costs.

Price of Bananas

refers to the market cost of bananas, which can vary based on factors like supply, demand, seasons, and geographical conditions.

Budget Line

A graph depicting all possible combinations of two goods that a consumer can afford given their income and the prices of the goods.

State Sales Taxes

Taxes imposed by state governments on the sale of goods and services within their jurisdiction.