If the price of Pepsi is $5 and the price of pizza is $10, what is the slope of this budget constraint?

Understand the Problem

The question is asking for the slope of a budget constraint based on the prices of two goods, Pepsi and pizza, given their prices and the income of the consumer. This reflects the consumer's choices given these constraints.

More Information

The slope of a budget constraint reflects the trade-off rate between two goods, often considered as the opportunity cost.

Tips

A common mistake is not flipping the ratio to be negative, which represents the trade-off direction.

Sources

• What is the Slope of the Budget Constraint? - Brainly - brainly.com