Question

What will be the slope of budget line of Py=4 and
Py = 5 ?​

Answer 1

Answer:

MRS = Px/Py, the consumer will not change their consumption. Recall that MRS is the slope of the indifference curve, and Px/Py is the slope of the budget line. This means that if the slope of the indifference curve is steeper than that of the budget line, the consumer will consume more x and less y.