Assume the price of product Y (the quantity of which is on the vertical axis) is R31 and the price of product X (the quantity of which is on the horizontal axis) is R41. Also assume that money income is R672. The absolute value of the slope of the resulting budget line:

Answer 1

The formula for the slope of a budget line is given by:

Slope = - (Price of X / Price of Y)

Therefore, in this case, the slope of the budget line can be calculated as:

Slope = - R41 / R31
Slope = -1.32

The absolute value of the slope of the resulting budget line would be 1.32.