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31 January, 10:08

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

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  1. 31 January, 12:08
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    Slope of the budget line = - 0.5

    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
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