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Tahjanae Henderson
on Dec 19, 2024

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Assume that a consumer has a given budget or income of $10 and that she can buy only two goods, apples or bananas. The price of an apple is $2.00 and the price of a banana is $1.00. What is the slope of the budget line if the quantity of apples were measured on the horizontal axis and bananas on the vertical axis?

A) -0.5
B) -0.8
C) -1.6
D) -2

Slope

A measure of the steepness or incline of a line, representing the rate at which one variable changes in relation to another.

Budget Line

A graphical representation showing all possible combinations of two goods that can be purchased with a given income and prices.

Horizontal Axis

The x-axis in a graph, typically representing the independent variable or the quantity of interest.

  • Understand the concept of budget constraints and opportunity cost.
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Lancer DomingoDec 26, 2024
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