Answer:
The slope of the budget line is -0.5.
Explanation:
A consumer buys two goods, A and B.
The income of the consumer is $100.
The price of good A is $10.
The price of good B is $20.
A budget line shows the maximum possible combinations of two goods that a consumer can purchase by completely exhausting his/her income. The two goods are represented on two different axis.
Good A is measured on the horizontal axis, while good B is measured on vertical axis.
The slope of the budget line is
= [tex]-\frac{Px}{Py}[/tex]
= [tex]-\frac{10}{20}[/tex]
= - 0.5
