1. Given the budget equation 5M + 10P = 100, where M represents movies and P represents pizza, the slope of the budget line is

A) the relative price of one good in terms of the other.

B) the price of good M.

C) the price of good P.

D) dependent upon the quantities of the goods consumed

2. Chris chooses between two goods, X and Y (see figure below). At first, the price of X is low and the price of Y is high (budget line B1). Chris tells you his best affordable combination of X and Y is at point A. Then the price of X rises, while the price of Y falls (budget B2). Chris tells you that at these new prices, his optimal consumption bundle is still point A. What must be true of Chris's preferences?

A) Chris prefers X to Y.

B) Chris prefers Y to X.

C) X and Y are perfect complements.

D) X and Y are perfect substitutes.

E) Chris's preferences must violate one of our assumptions about consumer behavior.