What is the slope of the budget line?

P1/P2

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-(P2/P1)

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-(P1/P2)

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P2/P1

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Solution

The correct option is C -(P1/P2)
The slope of the budget line is the is the ratio of the prices of good 1 and good 2. This would mean price of good on the x axis divided price of goods on the y axis. The slope of a budget line is always negative as it is downward sloping.

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