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Ambrose Has Indifference Curves with the Equation X2 = Constant

Question 3

Multiple Choice

Ambrose has indifference curves with the equation x2 = constant - 4x1/21, 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 (16, 10) ?


A) -0.50
B) -16/10
C) -10/16
D) -14
E) -4

Correct Answer:

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