why have they mentioned that bananas are being sacrificed to gain apples.aren't an apple each being sacrificed to gain 2 bananas?in that case wouldn't slope be 1/2.please explain
why have they mentioned that bananas are being sacrificed to gain apples.aren't an apple each being sacrificed to gain 2 bananas?in that case wouldn't slope be 1/2.please explain 2.18 Tabie 2.7: Schedule of Budget Line CombinationofAppIes Apples (A) Bananas (B) Money spent = Income cc and Bananas (Z 4 each) (Z 2 each) 5 4 3 2 1 10 J 8 2 2 4 6 8 10 Budget Line Unattainable Combination Point 'D' indicates that income is underspent Apples (A) (5 x 4) + (0 = 20 (4 x 4) + (2 x 2) = 20 (3 x 4) + (4 x 2) = 20 (2 x 4) + (6 x 2) = 20 (1 x 4) + (8 x 2) = 20 (0 x 4) + (10 2) = 20 x

Dear student,
The diagram can be read both ways. However, in the calculation of slope it is calculated as the ratio of change in the units of y-axis and change in the units of x-axis. 
In this way, as per the given diagram it is the ratio of units of bananas willing to sacrifice upon the units of apples gained. 

  • 1
What are you looking for?