The slope of a budget constraint line is influenced by Group of answer choices how effectively one more of each of the two competing goods satisfies wants. the cost of production of the products considered how much one product costs compared to the other. the tastes and preferences of the decision-maker.

Question

Taniya Chandler

Business

28 October, 05:15

The slope of a budget constraint line is influenced by Group of answer choices how effectively one more of each of the two competing goods satisfies wants. the cost of production of the products considered how much one product costs compared to the other. the tastes and preferences of the decision-maker.

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Answers (1)

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Payton Nguyen · Answer 1

how much one product costs compared to the other.

Explanation:

Budget constraint line shows all combinations of two products that a consumer can buy at a given price and a t a given income level.

Budget constraint implies that consumption of a person is limited by their income, so they will need to find the best combination of two products that will maximise satisfaction given limited resources.

The slope of the budget contraint line will be dependent of the cost of one product compared to the other. For example cost combination of $10:$2 will have steeper slope than $5:$5.