Suppose that a consumer has the utility function U = 5A + 7B.If is measured on the horizontal axis
A) The indifference curves will be L-shaped.
B) The indifference curves will be horizontal.
C) The indifference curves will be straight lines with slope -5/7.
D) The indifference curves will be straight lines with slope -7/5.

Question

Suppose that a consumer has the utility function U = 5A + 7B.If  is measured on the horizontal axis
A) The indifference curves will be L-shaped. 
B) The indifference curves will be horizontal. 
C) The indifference curves will be straight lines with slope -5/7. 
D) The indifference curves will be straight lines with slope -7/5.

Quizplus · Accepted Answer

The utility function is linear, which means the marginal utility is constant for each good. Thus, the indifference curves will be straight lines. To find the slope of the indifference curves, we need to take the partial derivative of the utility function with respect to A and B:
MUa = 5
MUb = 7
The slope of the indifference curves is given by -MUa/MUb = -5/7. Therefore, the correct answer is C.

Suppose That a Consumer Has the Utility Function U =