Jean-Pierre Has Preferences Represented by the Utility Function U(x, Y)=min{2x

question 4

Multiple Choice

Jean-Pierre has preferences represented by the utility function U(x, y) =min{2x + y, x + 6y}.If x is on the horizontal axis and y is on the vertical axis, what is the slope of his indifference curve at the point (7,7) ?

• A)-1/2
• B)-6/2
• C)-1/6
• D)-2
• E)-7/7

---

Definitions:

Perpetuity

A financial instrument that provides a stream of infinite cash flows or payments that continue indefinitely.

Annual Percentage Rate (APR)

The interest rate charged per period multiplied by the number of periods per year.

Annuity Due

An annuity for which the cash flows occur at the beginning of the period.