Question

Whats is the slop of the budget line

Answer 1

The slope of Friday and Kwame's budget lines can be obtained by examining the given information;

1. Friday is willing to trade 2 fish for 1 coconut, this means that Friday's budget slope is;

`(1)/(2)\text{ coconut/fish}`

We can also obtain this slope directly from the budget line by relating changes in coconut with fish;

`(10-0)/(20-0)=(1)/(2)\text{ coconut/fit}`

2. Kwame is willing to trade 3 fish for 1 coconut, this means that Kwame's budget slope is;

`(1)/(3)\text{ coconut/fish}`

We can also obtain this slope directly from the budget line by relating changes in coconut with fish;

`(10-0)/(30-0)=(1)/(3)\text{ coconut/fish}`