While drawing budget line of a consumer consuming Nachos chips and Pepsi, if the quantity of Nachos taken on Y-axis and quantity of Pepsi on X-axis.…

CA Foundation · Business Economics · MTP · April 2025
While drawing budget line of a consumer consuming Nachos chips and Pepsi, if the quantity of Nachos taken on Y-axis and quantity of Pepsi on X-axis. The slope of budget line will be-
(A) A. PP/PN
(B) B. PN/PP
(C) C. M/ PN
(D) D. M/PP [Where, Pp – Price of Pepsi, PN - Price of Nachos & M – Money income of consumer]

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. PP/PN

Topics: Theory of Demand and Supply

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