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- Consumer Theory vs. Real Consumerseconomics-mcqs › consumer-theory-vs-real-consumers
- Published
- 2 Jun 2019
- Last updated
- 28 May 2026
A consumer is deciding how many pizzas and sandwiches to buy. If the quantity of pizza is represented on the x-axis and the quantity of sandwiches on the y-axis, with the price of one pizza being Rs 10 and one sandwich costing Rs 5, what is the slope of the consumer's budget line?
Multiple choice question for Consumer Theory vs. Real Consumers. Select an option, then review the explanation below.
Explanation
The slope of the budget line is given by the negative ratio of the price of the good on the x-axis to the price of the good on the y-axis. Here, slope = price of pizza / price of sandwich = 10 / 5 = 2.
More Consumer Theory vs. Real Consumers MCQs
Practice related questions from the same subject.
- 1.Assuming that consumption during youth and old age are both normal goods, how does a rise in the interest rate affect the amount saved?
- 2.What happens to the budget line if both income and prices double simultaneously?
- 3.Based on Exhibit 4, assume a consumer has €100 to spend and must decide between purchasing socks or belts. How would you classify a pair of socks in this scenario?
- 4.Refer to Exhibit 4. Assume a consumer is deciding between purchasing socks and belts, with an income of €100. If the price of socks decreases from €5 to €2 per pair, which movement illustrates the substitution effect?
- 5.When a rise in a consumer's income leads to a reduction in the amount of a product they buy, how is this product classified?