Suppose That a Consumer Has the Utility Function U = $A$

question 15

Multiple Choice

Suppose that a consumer has the utility function U = 5A + 7B. If $A$ 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.

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Definitions:

Pareto Diagram

A graphical representation that displays the relative importance of differences within a set of data, usually to identify which factors are the most significant.

Cause-and-Effect Diagram

A visual tool that helps identify, sort, and display possible causes of a specific problem or quality characteristic.

Cafeteria Dissatisfaction

Reflects displeasure or unhappiness with the services, food quality, or overall experience of dining in a cafeteria setting.

Scatter Diagram

A graphical representation used to visualize the relationship between two quantitative variables, helping to identify any correlations.