If the equation of a budget line is given by 5x + 7y = 64, the slope of the budget line will be :
Answers
Answer:
budget line = 5x+7y = 64
Explanation:
slope of budget line = -p1÷ p2
= - 5÷7 = 0.714.
Answer:
The line in the budget shows the many possible pairs of items that a person may buy with their money. The trade-off between the two things is mirrored in the budget line's slope, which is defined by the respective prices of the two products.
Explanation:
The quantities of the first good (x) and the second good (y) are added together to make up the final amount (x + 7y = 64). The sum of 64 is the sum that may be spent on both items. Rewriting the equation in slope-intercept form, y = mx + b, allows us to determine the budget line's slope, where m is the slope and b is the y-intercept.
To begin, we may get y by subtracting 5x from either side of the equation, which gives:
7y = -5x + 64
Hence, we may separate y by dividing both sides by 7, which yields:
y = (-5/7)x + 64/7
The slope of the budget line is -5/7, as we can now see. To stay under one's allotted spending limit, one must reduce one's consumption of the second good, y, by 5/7 of a unit for each unit rise in x, the amount of the first commodity. In other words, if the budget line has a negative slope, it means that the two commodities are substitutes, and an increase in the amount of one leads to a reduction in the quantity of the other that can be bought with the given budget.
To learn more about trade-offs, click on the link below.
https://brainly.in/question/39726713
To learn more about the budget, click on the link below.
https://brainly.in/question/6778403
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