Economy, asked by singhrajvansh401, 9 months ago

Q19. The slope of consumer's budget line is:
a) Positive and constant
b) Negative and decreasing
c) Negative and constant
d) Positive and increasing​

Answers

Answered by wajahatkincsem
0

The slope of the consumer's budget line is negative and decreasing.

What is the slope of the consumer's budget line?

  • The difference in the ratio of prices between two goods let's say good 1 and good 2 is called the slope of the budget line.
  • If we divide the prices of good 1 and good 2 and then draw their ratio on a coordinate system then we will get a slope.
  • Such as the price of goods on the x-axis divided by the prices of other goods on the y-axis.
  • Looking at the slope, we will get to know that the slope of the budget line is always downward and negative.

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