Asked by
Simone Portnoy
on Oct 14, 2024Verified
Tim has preferences represented by the utility function U(x, y) min6x y, x 2y.If x is on the horizontal axis and y is on the vertical axis, what is the slope of his indifference curve at the point (8,9) ?
A) 6
B) 2/6
C) 1/2
D) 1/6
E) 8/9
Utility Function
A mathematical representation of how consumers rank different bundles of goods based on the satisfaction or utility those goods provide.
Indifference Curve
A graphical representation of different bundles of goods between which a consumer is indifferent, showing the combinations of two goods that give the consumer the same level of satisfaction.
Horizontal Axis
In a graph or chart, the horizontal axis is typically used to represent the independent variable or the base measurement.
- Learn about the concept of indifference curves and their distinct qualities.
Verified Answer
SD
Learning Objectives
- Learn about the concept of indifference curves and their distinct qualities.