Slope of a budget line = - price of good 2 / price of good 1....

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Slope of a budget line = - price of good 2 / price of good 1....

Slope of a budget line = - price of good 2 / price of good 1.

Healthy Meals and Unhealthy Snacks
	Budget	Price of Healthy Meals (Good 1)	Price of Unhealthy Snacks (Good 2)
Scenario 1	$80.00	$5.00	$2.00
Scenario 2	$80.00	$5.00	$1.25
Scenario 3	$120.00	$5.00	$2.00

What is the X intercept?
What is the Y intercept?
What is the slope?

business economics

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Answer 1

Answer #1

Scenario 1:- X intercept = 80/5 = 16, Y intercept = 80/2 =40, Slope = 2/5 = 0.4

Scenario 2:- X intercept = 80/5 =16, Y intercept = 80/1.25 = 64, Slope = 1.25/5 = 0.25

Scenario3:- X intercept = 120/5 = 24, Y intercept = 120/2 = 60, Slope = 2/5 = 0.4

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Answer 2

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