FYI – All the point are supposed to lie on the indifference curves for these questions even if they appear a touch off.
Based on the budget constraint and 3 indifference curves shown here we know that:
A. | If pizzas cost $1 then apples must cost $0.20 |
B. | If pizzas cost $1 then apples must cost $4 |
C. | If pizzas cost $1 then apples must cost $0.25 |
D. | If pizzas cost $1 then apples must cost $5 |
E. | If pizzas cost $1 then apples must cost $1 |
How do I find the relative price?
I tried finding the differences from the slopes but got different slopes.
Please explain