Question

Suppose that a there are two goods, X and Y. The price of Good X is $5 and the price of Good Y is $10. The seller of Good X offers a deal where if a consumer buys 1 unit of Good X they pay full price, but the second unit of Good X is only $2.

Calculate the slope of the budget constraint between 1 unit of Good X and 2 units of Good X.

(Remember to include a negative sign. Round to the nearest two decimal places if necessary.)

Answer 1

The slope of the budget constraint is -0.2. The solution is attached in the picture below

Step-by-step explanation: