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Paladinen [302]
2 years ago
10

Assume the price of product Y (the quantity of which is on the vertical axis) is $15 and the price of product X (the quantity of

which is on the horizontal axis) is $3. Also assume that money income is $60. The absolute value of the slope of the resulting budget line is:
Business
1 answer:
Delicious77 [7]2 years ago
8 0

Answer:

slope of the resulting budget line = \frac{1}{5} = 0.2

Explanation:

given data

price of product Y = $15

price of product X = $3

money income C = $60

to find out

absolute value of the slope of the resulting budget line

solution

we know here equation of resulting budget line is that is express as

AX + BY = C

here A and B are the quantity and X and Y are price and C is income

so

3 A + 15 B  = 60

so

the slope of the resulting budget line is

slope of the resulting budget line = \frac{3}{15}

slope of the resulting budget line = \frac{1}{5} = 0.2

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