suppose it costs $4 per cone of ice-cream and $6 for a sundae. if you draw a budget line with cones of ice-cream measured on the xx-axis and sundaes on yy-axis then the slope of this budget line will be

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13-12-2022
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suppose it costs $4 per cone of ice-cream and $6 for a sundae. if you draw a budget line with cones of ice-cream measured on the xx-axis and sundaes on yy-axis then the slope of this budget line will be

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Bhuvangarg Bhuvangarg · Answer 1 · 2022-12-18T12:52:01+01:00

For two items, the budget line is drawn. It is determined by taking into account the consumer's income, purchasing power, and product prices. A budget line's slope is always the same.

What is the formula for budget lines?

Since the numerical slope of the line represents the price ratio, or the relative price of good X in terms of good Y, this line is also referred to as the price line. As a result, the budget line has a slope of px / py, which corresponds to the ratio of the prices of X and Y.

What is the slope of the budget line?

The ratio of the prices of goods 1 and 2 is the slope of the budget line. This would be the product of the x-axis price of the good and the y-axis price of the goods. The incline of a spending plan line is generally negative for what it's worth descending slanting.

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