Question

cruise budget constraint
based on the graph of marens budget constraint for dresses and shoes, what accurately describes the slope of her budget constraint?
select one:
a. it is positive because it reflects the benefits we receive from buying products.
b. it is negative because of scarcity and the limited amount of money available to maren.
c. it is negative because dresses are more expensive than shoes.
d. it is positive because maren still has plenty of money and is able to afford both dresses and shoes.

Explanation:

The budget - constraint represents the combinations of goods (dresses and shoes) that Maren can afford given her income and the prices of the goods. Due to scarcity and a limited budget, as Maren buys more of one good (shoes), she has to buy less of the other (dresses). This leads to a negative - sloped budget constraint.

Answer:

B. It is negative because of scarcity and the limited amount of money available to Maren.