Advertisements
Advertisements
Question
Why is the budget line negatively sloped?
Options
Prices are rising
Buying more of one good means giving up some of the other
Total spending is zero
Prices are not fixed
MCQ
Advertisements
Solution
Buying more of one good means giving up some of the other
Explanation:
With limited money, spending more on one good means less can be spent on the other, causing a negative slope.
shaalaa.com
Is there an error in this question or solution?
