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 · January 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) P p /P N (b) P N /P p (c) M/P N (d) M/P p [Where, P p – Price of Pepsi, P N - Price of Nachos & M – Money income of consumer]
(A) A. P p /P N
(B) B. P N /P p
(C) C. M/P N
(D) D. M/P p

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. P p /P N

Topics: Indian Economy

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