The slope of the budget line is determined by .

prices

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price ratio

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income

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utility

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Solution

The correct option is B price ratio
The budget constraint shows the various combinations of the two goods that the consumer can afford. If the price of one commodity is changed, with the other being constant, the slope of the budget line. The price ratio is the slope of the budget line.

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Explain why the budget line is downward sloping.

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