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zaharov [31]
3 years ago
15

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 indiffere

nce curve when y = 7 and x = 2? assume that good x is on the horizontal axis and good y is on the vertical axis.
Business
1 answer:
lesya [120]3 years ago
4 0
Answer: -7

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} = -\frac{4xy}{2x^2} 
\\
\\ \indent \text{slope} = -\frac{2y}{x} 
\\
\\ \indent \text{slope} = -\frac{2(7)}{2} 
\\
\\ \indent \boxed{ \text{slope} = -7}
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