Answer:
The market rate of exchange refers to the ratio of units sacrificed of Y to acquire specific units of X at a given market price. It indicates the slope of a budget line.
Slope of budget line shows the rate at which market price allows the consumer to substitute Good-X for Good-Y. It is expressed as Px/Py.
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Answer:
The market rate of exchange refers to the ratio of units sacrificed of Y to acquire specific units of X at a given market price. It indicates the slope of a budget line.
Verified answer
Answer:
Slope of budget line shows the rate at which market price allows the consumer to substitute Good-X for Good-Y. It is expressed as Px/Py.
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