Question

Suppose that the marginal utility of good y is 2x2 and the marginal utility of good x is 4xy. what is the slope of the indifference curve when y = 7 and x = 2? assume that good x is on the horizontal axis and good y is on the vertical axis.

Answer 1

Answer: -7

Step-by-step explanation:

The slope the indifference curve is given by


`\text{slope} = -\frac{\text{marginal utility of good }x}{\text{marginal utility of good }y} \\ \\ \indent \text{slope} = -(4xy)/(2x^2) \\ \\ \indent \text{slope} = -(2y)/(x) \\ \\ \indent \text{slope} = -(2(7))/(2) \\ \\ \indent \boxed{ \text{slope} = -7}`