In Problem 2, Ambrose Has Indifference Curves with the Equation

question 4

Multiple Choice

In Problem 2, Ambrose has indifference curves with the equation , where larger constants 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 Ambrose's indifference curve when his consumption bundle is (1, 11) ?

• A) -0.51
• B)-16/11
• C) -12
• D) -2
• E) -1

---

Definitions:

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices.

Grocery Stores

Grocery stores are retail establishments primarily engaged in offering a general range of food products, which may also include fresh produce, meats, dairy, and bakery items alongside household goods.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business.

Variable Costs

Costs that vary directly with the level of production or output, in contrast to fixed costs, which remain constant regardless of the level of activity.