I got option b for this, but I'm not certain that's right; please help. See the picture below. Why must a budget constraint have a negative slope?Income and quantity demanded are inversely related.On a budget constraint, buying more of one good requires buying less ofanother.The spreading effect.Decreasing returns to scale.Diminishing marginal utility.

ay must a budget constraint have a negative slope? O Income and quantity demanded are inversely related. OOn a budget constraint, buying more of one good requires buying les another. The spreading effect. Decreasing returns to scale. Diminishing marginal utility.

ay must a budget constraint have a negative slope? O Income and quantity demanded are inversely related. OOn a budget constraint, buying more of one good requires buying les another. The spreading effect. Decreasing returns to scale. Diminishing marginal utility.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

I got option b for this, but I'm not certain that's right; please help. See the picture below.

Why must a budget constraint have a negative slope?
Income and quantity demanded are inversely related.
On a budget constraint, buying more of one good requires buying less of
another.
The spreading effect.
Decreasing returns to scale.
Diminishing marginal utility.

Expert Solution

Step 1

Budget constraint measures the combinations of two goods that a consumer can buy with the given budget.

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