If the price of Good X is Rs. 5 and that of Good Y is Rs. 4, find the slope of the Budget line.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → \( -\displaystyle\frac{5}{4} \)
Given:
Price of Good X, PX = Rs. 5
Price of Good Y, PY = Rs. 4
With Good X on the horizontal axis, the slope of the budget line is the negative of the price ratio:
\( \displaystyle \text{Slope} = -\frac{P_X}{P_Y} = -\frac{5}{4} \)
The slope is negative because buying more of X means giving up some of Y.
NCERT (2026-27): Introductory Microeconomics — Chapter 2: Theory of Consumer Behaviour
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