alleryStart learning →The negative slope of a budget constraint reflects that buying more of one good means:
ABuying less of the other
BBuying more of both
CRaising total income
DLowering all prices
Answer & Solution
Correct answer: A. Buying less of the other
1. The budget line has a downward slope for a reason.
2. Choices are made within certain budget constraints.
3. The slope of the budget constraint line is negative, computed as rise over run.
4. A negative slope means the two quantities move in opposite directions.
5. So buying more of one good means buying less of the other.
_Source: OpenStax Principles of Microeconomics for AP Courses 2e (CC BY 4.0), Ch 6 'Consumer Choices'_
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