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assume that a consumer has a given budget or income of $12 and that she can buy only two goods, apples or bananas. The price of an apple is $1.50 and the price of a banana is $0.75. What is the slope of the budget line if the quantity of apples were measured on the horizontal axis and the bananas on the vertical axis?

Sagot :

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Answer:

-2

Step-by-step explanation:

The equation of a straight line is given by:

y = mx + b

where y is the variable on the vertical axis, x is the variable on the horizontal axis, m is the slope of the line = change in vertical axis / change in horizontal axis, b is the y intercept.

Given that the quantity of apples were measured on the horizontal axis and the bananas on the vertical axis. Therefore let y represent the quantity of bananas and x represent the quantity of apples. The price of banana is $0.75 while that of apple is $1.50, Hence:

0.75y + 1.5x = 12

0.75y = -1.5x + 12

y = -2x + 16

Hence comparing with y = mx + b, the slope of the budget line is -2

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