Question

A consumer has $100 per day to spend on product A, which has a unit price of $7, and product B, which has a unit price of $15. What is the slope of the budget line if good A is on the horizontal axis and good B is on the vertical axis?

Answer 1

Answer:

-15/7

Step-by-step explanation:

Let B(x1, y1) be on vertical (y-axis) then B = (0, 15) and

A(x2, y2) be on horizontal (x-axis) then A = (7, 0).

Now, slope = (y2 - y1)/(x2 - x1)

then slope = (0 - 15)/(7 - 0)

=> slope = (-15)/7

slope of the budget = -15/7