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Posts: 138
2 months ago

Question 1.

The budget constraint shows that

• as consumers spend more on one good, they spend more on others.

• total income equals total spending on one good.

• the consumer can have as many goods as he wants.

• the consumer faces a trade-off in the consumption of goods.

Question 2.

Suppose that the quantity of good y is measured along the vertical axis and that the quantity of good x is measured along the horizontal axis. If the price of good x is $5 and the price of good y is $10 when income is $200 per time period, the slope of the consumer's budget constraint will be

• -0.5.

• -5.

• -2.

• -10.
Source  Download
Economics Today: The Micro View
Edition: 19th
Author:
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Answer verified by a subject expert
wrote...
Posts: 168
2 months ago
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Answer 1

the consumer faces a trade-off in the consumption of goods.

Answer 2

-0.5.
1
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