Steve enjoys pedicures and romance novels. Steve's marginal utility for pedicures is given by MU₂ = Nº.6/p0.6 and his marginal utility for novels is given by MUN = P0.4/Nº.4, where P is the number of pedicures that Steve receives and N is the number of romance novels he has. Pedicures cost $10 (Pp-10), novels cost $1 (P-1) and Steve has a budget of $100. If graphed with novels on the vertical axis and pedicures on the horizontal axis the slope of Steve's budget line is: O a) -1/4 Ob) -4 Oc) -s Od) -10 O e) none of the above.

Q&A Education