Hi guys, I have a question:
A consumer’s budget constraint is drawn with Good X on the horizontal axis and Good Y on the vertical. If price of Good X is 8 and price of good Y is 20, what is the value of the slope of the consumer’s budget constraint?
Why is the answer -Px/Py and not -Py/Px? Could someone help me ? Thanks
A consumer’s budget constraint is drawn with Good X on the horizontal axis and Good Y on the vertical. If price of Good X is 8 and price of good Y is 20, what is the value of the slope of the consumer’s budget constraint?
Why is the answer -Px/Py and not -Py/Px? Could someone help me ? Thanks