Ans ....... c. —0.5
Explanation — on horizontal axis we have sticks (s) which is priced(Ps) $10 per unit, while on horizontal axis we have drums(d) , which is priced( Pd) $20 per unit,
Slope of the budget line (d Q/s Q) = —Ps/Pd = —10/20 or,( dQ/sQ)=–1/2=–0.5
(Note d Q — quantity of drums) and sQ — quantity of sticks , Ps — price of sticks, pd — price of drums.
Slope of the budget line (loss/gain) on vertical axis we loose and gain on horizontal axis when we proceed downward so it is ( dQ(loss)/a Q (gain).
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