This graph shows three different budget constraints: If we compare budget constr

Question

This graph shows three different budget constraints: If we compare budget constraint A to budget constraint B in the graph shown, what can be said of the relative prices reflected in the two? Because A is flatter, soda is relatively more expensive in A than In budget constraint B. Because A is steeper, soda is relatively less expensive in A than in budget constraint B. Because B is flatter, soda is relatively more expensive in A than in budget constraint B. Because B is steeper, soda is relatively less expensive in A than in budget constraint B.

Explanation / Answer

Answer) Because A is steeper, Soda is relatively less expensive in the A than in budget constraint B.

The quantity of sodas available in A is much more so it must be cheaper when supply is more.

In The other line B the quantity available is very less so price is more.

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