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What Is the Slope of the Price Consumption Curve for Two

Question 103

Multiple Choice

What is the slope of the price consumption curve for two goods, x and y, when preferences are measured by the utility function U(x,y) = x0.5y0.5, the price of good y is $10, income equals $100, and the price of good x increases from $5 to $10?


A) Slope equals zero.
B) Slope is infinite.
C) Slope is - What is the slope of the price consumption curve for two goods, x and y, when preferences are measured by the utility function U(x,y) = x<sup>0.5</sup>y<sup>0.5</sup>, the price of good y is $10, income equals $100, and the price of good x increases from $5 to $10? A) Slope equals zero. B) Slope is infinite. C) Slope is - . D) Slope is . .
D) Slope is What is the slope of the price consumption curve for two goods, x and y, when preferences are measured by the utility function U(x,y) = x<sup>0.5</sup>y<sup>0.5</sup>, the price of good y is $10, income equals $100, and the price of good x increases from $5 to $10? A) Slope equals zero. B) Slope is infinite. C) Slope is - . D) Slope is . .

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