Asked by
Malika skeete
on Dec 01, 2024Verified
Charlie's utility function is U(A, B) = AB, where A and B are the numbers of apples and bananas, respectively, that he consumes.If Charlie is consuming 40 apples and 160 bananas, then if we put apples on the horizontal axis and bananas on the vertical axis, the slope of his indifference curve at his current consumption is
A) -4.
B) -8.
C) -41.
D) -1/4.
E) -1/8.
Utility Function
Represents a consumer's preference ranking for various bundles of goods, articulating the level of satisfaction received.
Indifference Curve
An indifference curve represents a graph showing different combinations of two goods that provide the consumer with the same level of satisfaction or utility.
Apples
A common fruit that is edible, coming in various varieties and used both for eating raw and in cooking.
- Analyze the aspects of indifference curves and their inclined angles according to different consumption points.
Verified Answer
AA
Learning Objectives
- Analyze the aspects of indifference curves and their inclined angles according to different consumption points.