What is the relationship between the slope of the budget line and the notion of opportunity cost?

Question

Quizplus · Accepted Answer

The Answer is The slope of the budget line represents the opportunity cost of one good in terms of the other.Suppose we have two goods: fish and chips.If the price of fish (P_f)is $2 and the price of chips (P_c)is $8,then the price ratio −P_c/P_f = − 8/2 = − 4.This means that if I want 1 more unit of chips,I have to give up 4 more units of fish.Therefore,the opportunity cost of 1 unit of chips is given by the slope,− 4,in terms of the number of fish that has to be given up.

What Is the Relationship Between the Slope of the Budget