Economics 9708 · AS & A Level · Indifference curves and budget lines

Indifference curves and budget lines — practice question

The diagram illustrates a consumer’s budget line. What factors determine the gradient of the budget line?

  • Athe marginal rate of substitution of good X for good Y
  • Bthe price of good X multiplied by the price of good Y
  • Cthe ratio of the price of good X to the income of the consumer
  • Dthe ratio of the price of good X to the price of good Y

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