Answer in Microeconomics for hello #160259
Where larger values of the constant C correspond to higher indifference curves. If good 1 is drawn on the horizontal axis and good 2 on the vertical axis, what is the slope of John’s indifference curve when his consumption bundle is (x1, x2) =(4, 10)?
Given;
“(x1,x2)=(4,10)”
The indifference curve has two points. one touching the x-axis and the other touching the y-axis.
Good 1 is on the x-axis and therefore we will the point where it cuts x-axis which is at point (4,0)
Good 2 is on the y-axis and thus we will have the point where it cuts y-axis which is at point (0,10)
“therefore slope of indifference curve is Delta y/Delta x”
“implies Delta x/Delta y”
“therefore 0-4/10-0”
“implies -4/10”
“implies -4/10”
“-0.4”
slope of the indifference curve is -0.4
