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Questions › JNU › JNU SSS 2011 › Q97
1 mark, −0.25Microeconomics › Budget constraint and consumer equilibrium › Budget set and budget lineEasyabout 1 min

JNU SSS 2011 Question 97: Budget constraint and consumer equilibrium

Let units of good 1 be measured on the horizontal axis and units of good 2 on the vertical axis. Let price of good 1 be ppp and price of good 2 be qqq. The slope of the budget line is then given by

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Let units of good 1 be measured on the horizontal axis and units of good 2 on the vertical axis. Let price of good 1 be p and price of good 2 be q. The slope of the budget line is then given by (A) p/q (B) -p/q (C) q/p (D) -q/p

Budget constraint and consumer equilibrium has come up 99 times in 7 exams since 2004.

What this question tests

This question is on Budget set and budget line, part of Budget constraint and consumer equilibrium in Microeconomics.

Which bundles a consumer can afford, the slope of the budget line, and how income and price changes shift it.

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Question from the JNU SSS 2011 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.