Matt's ordinary demand function for commodity x1(p1, p2, I)=(3I)/p1. How will a 1% increase in p1 affect Matt's expenditures on
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Answer:
undefined
Step-by-step explanation:
To find the slope of the line between two points, use the slope formula .
and
represent the x and y values of one point the line passes through, and
and
represent the x and y values of another point the line also passes through. Therefore, use the x and y values of the points (0,3) and (0,4) to find the slope. Substitute them into the formula in the right order:
However, we can't divide 1 by 0. Therefore, the slope is undefined. (You could also graph the points to see that they form a vertical line, and all vertical lines have an undefined slope.)
