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]
Suggested Answer and Working Notes:
Correct Answer: Option (A)
A. P p /P N
Topics: Indian Economy