Question

Monroe consumes crab cakes and tuna. Monroe's utility increases with the consumption of crab cakes, but his utility neither increases nor decreases with the consumption of tuna. Assuming tuna is on the x-axis and crab cake is on the y-axis, what do Monroe's indifference curves look like? A) horizontal linesB) vertical lines C) upward-sloping lines from the origin D) downward-sloping lines

Answer 1

Answer:

A) horizontal lines

Explanation:

An indifference curve is a curve that shows the two combinations of goods that gives a consumer equal satisfaction.

If Monroe's utility doesn't increase with the consumption of crab cakes, his indifference curve would be a horizontal line. This is because crab cakes and tuna are perfect subsistuites. Monroe would be willing to substitute tuna for crab cakes as he doesn't derive any satisfaction from consuming tuna.

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