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?

Question

Mathematics

Amara Welch

27 June, 14:01

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?

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Answers (1)

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Seth Rangel · Answer 1

-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