Assume That a Consumer Has a Given Budget or Income

question 332

Multiple Choice

Assume that a consumer has a given budget or income of $12 and that she can buy only two goods, apples or bananas. The price of an apple is $1.50 and the price of a banana is $0.75. What is the slope of the budget line if the quantity of apples were measured on the horizontal axis and bananas on the vertical axis?

• A) -0.5
• B) -0.8
• C) -1.6
• D) -2.0

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