Hi everyone,
I was just reading on the ‘Budget constraints’ topic of Econ. I’ve noticed that the way the curriculum calculated the slope as = run/rise
i.e. x-axis/y-axis
Usually the slope is calculated as = rise/run => i.e. y-axis/x-axis.
Does it matter which way the slope is being calculated in this context and the answer is considered correct either way?
Thanks for your help.
Economics is weird: generally quantity is considered a function of price (not vice-versa), but economists like to have quantity on the x-axis and price on the y-axis.
A better way to think of slope is: Δdependent variable / Δindependent variable. Then you can use it whether you’re given price as a function of quantity (so it’s Δy/Δx) or quantity as a function of price (so it’s Δx/Δy).