Carl has the utility function U(x,y)= 2xy. His indifference curve passing through the bundle (4,3)must also pass through the point where x is equal to 6 and y is equal to:
A)12.
B)24.
C)2.
D)10.

Question

Quizplus · Accepted Answer

To find the equation of the indifference curve passing through (4,3), we can set U(x,y) equal to the utility level at (4,3):

2xy = 2(4)(3) = 24

This gives us the equation:

xy = 12

To find the point where x = 6, we can substitute 6 for x and solve for y:

6y = 12

y = 2

Therefore, the indifference curve passing through (4,3) must also pass through (6,2), which is answer choice C.

Carl Has the Utility Function U(x,y)= 2xy