Phil Rupp, has a sister Ethel who has the utility function U(x, y)  min5x  y, 6y.Where x is measured on the horizontal axis and y on the vertical axis, her indifference curves consist of a

A) vertical line segment and a horizontal line segment that meet in a kink along the line y  5x.
B) positively sloped line segment and a negatively sloped line segment that meet along the line x  y.
C) horizontal line segment and a negatively sloped line segment that meet in a kink along the line x  y.
D) vertical line segment and a horizontal line segment that meet in a kink along the line x  5y.
E) horizontal line segment and a positively sloped line segment that meet in a kink along the line x  5y.

Question

Ninecara Eugene · Accepted Answer

Final Answer : C, Explanation :  The utility function has a constant term of 6y, which means utility increases as y increases. Therefore, an indifference curve must slope downwards for any given level of x. Additionally, the utility function has a term of 5x, which indicates that an increase in x increases utility at a constant rate of 5. Thus, the indifference curve must be a horizontal line segment for any level of y where utility is maximized (i.e., at a constant value of 6). These two segments meet along the line x=y, forming a kink. Therefore, the correct answer is a horizontal line segment and a negatively sloped line segment that meet in a kink along the line x=y, which is represented by choice C.

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