Question

Suppose you won $15 on a lotto ticket at the local 7-Eleven and decided to spend all the winnings on candy bars and bags of peanuts. The price of candy bars is $0.75 and the price of peanuts is $1.50. What is the slope of the budget line

Answer 1

Slope of the budget line = -0.5

Step-by-step explanation:

Given:

Total amount won = $15

Price of candy bar (x) = $0.75

Price of peanuts bags (Y) = $1.50

Slope of the budget line = ?

Computation of slope of the budget line:

The slope of the budget line = -(Price of x commodity) / (Price of Y commodity)

Slope of the budget line = -$0.75 / $1.50

The slope of the budget line = -0.5

Therefore, the slope of the budget line is -0.5