Assume the price of product Y (the quantity of which is on the vertical axis) is R16 and the price of product X (the quantity of which is on the horizontal axis) is R2. Also assume that money income is R703. The absolute value of the slope of the resulting budget line:
The equation of the budget line can be found using the formula:
Money Income = Price of X * Quantity of X + Price of Y * Quantity of Y
703 = 2X + 16Y
Solving for Y in terms of X, we get:
Y = (703 - 2X) / 16
The absolute value of the slope of the budget line is the coefficient of X in the equation, which is 2.