Explain the derivation of slope of the budget line.

1.	Explain the derivation of slope of the budget line.
Answer» Answer: It is also important to REMEMBER that the slope of the budget LINE is equal to the ratio of the prices of TWO goods. ... Now, the quantity of good Y purchased if WHOLE of the given income M is spent on it is OB. It is thus proved that the slope of the budget line BL is equal to the ratio of prices of two goods.

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Answer:

It is also important to REMEMBER that the slope of the budget LINE is equal to the ratio of the prices of TWO goods. ... Now, the quantity of good Y purchased if WHOLE of the given income M is spent on it is OB. It is thus proved that the slope of the budget line BL is equal to the ratio of prices of two goods.

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Explain the derivation of slope of the budget line.​

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Explain the derivation of slope of the budget line.