Answer to Question #160259 in Microeconomics for hello

Question

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)?

Answer 1

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