The slope of the _________________ is determined by the relative price of the two goods, which is calculated by taking the price of one good and dividing it by the price of the other good. personal preference

Respuesta :

Answer:

The correct word for the blank space is: Budget Constraints.

Explanation:

Budget Constraints represent the economic situation by which individuals' demand is limited by a certain amount of money. The budget constrains concept is related to the effective demand which is the quantity of a good or service consumers can request according to their income. Under this scenario, given two goods the consumption of one will imply giving up part of the consumption of the other.