The following diagram shows a budget constraint for a particular consumer.
If the price of X is $10,what is the price of Y?
A) $15
B) $25
C) $35
D) $70

Question

The following diagram shows a budget constraint for a particular consumer. 
If the price of X is $10,what is the price of Y?
A) $15 
B) $25 
C) $35 
D) $70

Quizplus · Accepted Answer

The slope of the budget constraint is equal to the negative ratio of the prices of X and Y. Therefore, the price of Y is equal to 3 times the price of X. If the price of X is $10, then the price of Y is $30. The best choice(s) cannot be determined without information on the consumer's preferences and the prices of the goods in the market.

The Following Diagram Shows a Budget Constraint for a Particular