Question

write algebraic expression of budget line

Answer 1

Answer:

Lastly, the slope of the budget line is –px/py = -10/5 = -2 and the numerical slope of the line is –px/py = 2/1 = 2:1 which is the ratio of the prices of the goods X and Y. This price ratio represents the relative price of good X in terms of (the quantities of) good Y.