If a consumer's budget constraint has a slope that is less than -1:
A) the consumer gets more utility from good X than from good Y.
B) the price of good X is less than the price of good Y.
C) the consumer gets less utility from good X than from good Y.
D) the price of good X is greater than the price of good Y.

Question

Quizplus · Accepted Answer

The slope of a consumer's budget constraint is given by the negative ratio of the prices of the two goods (-Px/Py). If the slope is less than -1, it means that the price of good X (Px) is greater than the price of good Y (Py).

If a Consumer's Budget Constraint Has a Slope That Is