Asked by
Whitley Smith
on Oct 14, 2024
Verified
Phil Rupp's sister Ethel has the utility function U(x, y) min5x y, 6y.Where x is measured on the horizontal axis and y on the vertical axis, her indifference curves consist of a
A) horizontal line segment and a negatively sloped line segment which meet in a kink along the line x y.
B) vertical line segment and a horizontal line segment which meet in a kink along the line y 5x.
C) positively sloped line segment and a negatively sloped line segment which meet along the line x y.
D) vertical line segment and a horizontal line segment which meet in a kink along the line x 5y.
E) horizontal line segment and a positively sloped line segment which meet in a kink along the line x 5y.
Utility Function
An economic model that describes how consumers rank different bundles of goods according to the levels of satisfaction or utility those bundles provide.
Horizontal Axis
In a graph or chart, the horizontal line along which the values of one variable are plotted or measured.
Vertical Axis
In graphing data, this is the y-axis, which is typically used to measure the dependent variable or show the scale of values in a chart.
- Learn the fundamentals of indifference curves and their importance in showing consumer predilections.
Verified Answer
QC
Learning Objectives
- Learn the fundamentals of indifference curves and their importance in showing consumer predilections.