If the budget line is Yequals=500500equals=p Subscript Upper BpBBplus+p Subscript Upper ZpZZequals=4.004.00Bplus+14.0014.00Z, what is the marginal...

Question

Question

If the budget line is

Yequals=500500equals=p Subscript Upper BpBBplus+p Subscript Upper ZpZZequals=4.004.00Bplus+14.0014.00Z,

what is the marginal rate of transformation, MRT, between B (burritos) and Z (pizza)? (i.e. the slope of the budget line)

Assume burritos are measured on the vertical axis and pizza on the horizontal axis.

The marginal rate of transformation is

MRTequals=nothing.

(Enter your response rounded to one decimal place and include a minus sign if necessary.)

business economics

Answer 1

Answer #1

As, Y= 4B + 14Z

So MRT = PZ/PB

( Slope of Budget line, & Z is on X axis )

= -14/4

= -3.5

Answer 2

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