5 The exhibit given below shows Melanies budget constraint f

5 The exhibit given below shows Melanie\'s budget constraint for two goods, wine and cheese. The slope of the budget constraint equals Quantity of wine 60 0 40 Quantity of cheese O3/2 O2/3 02 ??

Answer is 2/3.

Explanation:

Sploe of Budget line is the Marginal rate of exchange, which can be computed as under:

Marginal rate of exchange = Change in Quantity of X/ Change in Quantity of Y = 40 / 60 = 2/3

$5 The exhibit given below shows Melanie\'s budget constraint for two goods, wine and cheese. The slope of the budget constraint equals Quantity of wine 60 0 40$

5 The exhibit given below shows Melanies budget constraint f

Solution

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