Question

Draw Marie’s budget constraint with pies on the horizontal axis and magazines on the vertical axis. What is the slope of the budget constraint?

Short answer

The slope of the budget constraint is -3.

Step-by-step solution

Graph

From the previous question maximum number of magazines and pies, she could buy this week is 6 and 2 respectively.

Price of each magazine and pie is $\$4$and$\$12$ respectively.

Apply the formula

$m=\frac{y_2-y_1}{x_2-x_1}$

$$\begin{gathered} m=\frac{6-0}{0-2} \\ m=-3 \end{gathered}$$