Asked by
Victoria Acosta
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 240 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) -1/6.
B) -12.
C) -41.
D) -6.
E) -1/12.
Utility Function
A mathematical representation of how a consumer's preferences over a set of goods and services translates into an assessment of the utility or satisfaction derived from each bundle of consumption.
Indifference Curve
A graph representing different combinations of two goods that provide a consumer with the same level of satisfaction or utility.
Apples
Edible fruits produced by an apple tree, characterized by a sweet flavor and crisp texture, often consumed raw or used in a variety of culinary dishes.
- Assess the properties of indifference curves and their slopes in relation to points of consumption.
Verified Answer
TM
Learning Objectives
- Assess the properties of indifference curves and their slopes in relation to points of consumption.