Question

Explain the derivation of slope of the budget line.​

Answer 1

Answer:

It is also important to remember that the slope of the budget line is equal to the ratio of the prices of two goods. ... Now, the quantity of good Y purchased if whole of the given income M is spent on it is OB. It is thus proved that the slope of the budget line BL is equal to the ratio of prices of two goods.

Answer 2

It is also important to remember that the slope of the budget line is equal to the ratio of the prices of two goods. ... Now, the quantity of good Y purchased if whole of the given income M is spent on it is OB. It is thus proved that the slope of the budget line BL is equal to the ratio of prices of two goods

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