A consumer has a budget of $30 per month to spend on two types of fruit, priced as follows:
·Apples: $2.50 per pound.
·Bananas: $2.00 per pound.
Assuming the quantity of apples is measured on the vertical axis and bananas on the horizontal axis, the slope of the budget constraint is closest to:
The budget constraint is given by the formula: 2.5 QA + 2.0 QB = 30, where QA and QB are quantities ofapples and bananas purchased, respectively. With the quantity of apples measured on the vertical axis, the slope is equal to -(PB /PA) = -(2.00/2.50) = - 0.8, where PA and PB are prices ofapples and bananas, respectively.