Homework Answers
Consider the given problem here there are 2 goods "X" and "Y". So, if "Px" be the price of "X" and "Py" be the price of "Y", if we measure "X" on the horizontal axis and "Y" on the vartical axis => the slope of the budget line is (-Px/Py).
Now, here "Px=5" and "Py=8" when X < = 1, then "Px" falls to "2".
So, "Px=2", "Py=8" when X > 1.
So, given the available information mentioned the slope of budget line for 1 < X <=2, is (-2/8) = -0.25.
Ans = -0.25
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