Multiple Choice
Suppose a consumer spends her income on two goods: music CDs and DVDs.If the price of a CD is $8,the price of a DVD is $20,and we graph the budget constraint by placing the quantity of CDs purchased on the horizontal axis,what is the slope of the budget constraint?
A) -5.0
B) -2.5
C) -0.4
D) The slope of the budget constraint cannot be determined without knowing the income the consumer has available to spend on the two goods.
Correct Answer:
Verified
Correct Answer:
Verified
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