PYQY = M, where PX = $2, PY = $1 and M = $10 (M is income) a. What is the slope of the budget constraint in QX/QY space (where QX is on the horizontal axis and QY is on the vertical axis)? b. What is the relative price of an additional unit

Principles of Microeconomics
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ISBN:9781305156050
Author:N. Gregory Mankiw
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Chapter21: The Theory Of Consumer Choice
Section21.1: The Budget Constraint: What The Consumer Can Afford
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Given the following budget constraint:

PXQX + PYQY = M, where PX = $2, PY = $1 and M = $10 (M is income)


a. What is the slope of the budget constraint in QX/QY space (where QX is on the horizontal
axis and QY is on the vertical axis)?
b. What is the relative price of an additional unit of X?
c. What is the relative price of an additional unit of Y

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