question 16 0.5 pts budget: $10 burgers: $2 bus tickets: 50 cents a b c d e f burgers bus tickets albertos…
question 16 0.5 pts budget: $10 burgers: $2 bus tickets: 50 cents a b c d e f burgers bus tickets albertos budget constraint is shown in the diagram above. the slope of this budget constraint is equal to 1/4 1/5 1/2 4 2
Answer
Explanation:
Step1: Recall slope formula
The slope of a budget - constraint is the negative of the ratio of the prices of the two goods. Let $P_1$ be the price of burgers and $P_2$ be the price of bus tickets. The slope $m=-\frac{P_1}{P_2}$.
Step2: Identify prices
The price of a burger $P_1 = 2$ dollars and the price of a bus - ticket $P_2=0.5$ dollars.
Step3: Calculate slope
Substitute the values into the formula: $m =-\frac{2}{0.5}=- 4$. But in terms of absolute value, the slope of the budget - constraint (ignoring the negative sign which just indicates the downward - sloping nature) is $\frac{P_1}{P_2}=\frac{2}{0.5} = 4$.
Answer:
4