This preview shows page 1. Sign up to view the full content.
Unformatted text preview: What is the slope of the budget line? • Opportunity cost of good on horizontal axis o Ex.) Opportunity cost of a bottle of water is 2 packs of gum • Relative prices o Ex.) Relative price of a bottle of water is 2 packs of gum Utility – the benefit or satisfaction that a person gets from the consumption of a good or service...
View Full Document
This note was uploaded on 09/29/2009 for the course ECON 101 taught by Professor Balaban during the Spring '07 term at UNC.
- Spring '07