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WHAT IS THE SLOPE OF THE U5 INDIFFERENCE CURVE AT B = 1 ?

WHAT IS THE SLOPE OF THE U5 INDIFFERENCE CURVE AT B = 1 ?

s preferences over two goods d Show more (30) Consider the following utility function which specifies Carinas preferences over two goods donuts (D) and brownies (B). (Please note that we call this type of utility function quasi-linear.) U(D B) = 3D + 2B 2 (a) (10) Plot an indifference curve map for this utility function (with donuts on the horizontal axis and brownies on the vertical one). Include the indifference curves described by U = 5 and U = 10. Label the bundles with B = 1 on each. (b) (5) What is the marginal utility of D? What is the marginal utility of B? (c) (5) What is the slope of the U5 indifference curve at B = 1 ? (d) (5) What happens to the slope of the indifference curve as we move from U5 to U10 at B = 1? (e) (5) What happens to the slope of the indifference curve as we move from U5 to U10 at D = 1? Show less

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