Question

The slope of the budget line reflects the

A. desirability of the two products.
B. price ratio of the two products.
C.amount of the consumer's income.
D.utility ratio of the two products.

Answer 1

The slope of the budget line reflects the price ratio of the two products.

Step-by-step explanation:

The slope of the budget line reflects the price ratio of the two products. Along the budget constraint, the total price of the two goods remains the same, so the ratio of the prices does not change. The slope of the budget line is determined by the relative price of the two goods. If the price of one product increases, the slope of the budget line becomes steeper, indicating a higher price ratio between the two products.