Donald derives utility from only two goods, carrots (X) and donuts (Y). His utility 0.1 0.9 function is as follows: U(X,Y) =X Y and donuts (P) are $45 and $90 respectively. Based on this information, what does the slope of the indifference curve for Donald tell us. . Donald has an income (M) of $900 and the price of carrots (P (P) Select one: A. For each additional quantity of carrot consumed, Donald must give up 0.25 of donuts to maintain the same level of satisfaction B. For each additional quantity of donuts consumed, Donald must give up 1/2 of carrots to maintain the same level of satisfaction C. For each additional quantity of carrot consumed, Donald must give up 1/2 of donuts to maintain the same level of satisfaction D. For each additional quantity of carrot.consumed, Donald must give up 1/9 of donuts to maintain the same level of satisfaction E. For each additional quantity of donuts consumed. Donald must give up 1/2 of carrots to maintain the same level of satisfaction. F. For each additional quantity of carrots consumed, Donald must give up 9 units of donuts to maintain the same level of satisfaction G. For each additional quantity of donüts consumed. Donald must give up 1/9 of carrots to maintain the same level of satisfaction H. For each additional quantity of donutS consumed. Donald must give up 9 units of carrots to maintain the same level of satisfaction
Donald derives utility from only two goods, carrots (X) and donuts (Y). His utility 0.1 0.9 function is as follows: U(X,Y) =X Y and donuts (P) are $45 and $90 respectively. Based on this information, what does the slope of the indifference curve for Donald tell us. . Donald has an income (M) of $900 and the price of carrots (P (P) Select one: A. For each additional quantity of carrot consumed, Donald must give up 0.25 of donuts to maintain the same level of satisfaction B. For each additional quantity of donuts consumed, Donald must give up 1/2 of carrots to maintain the same level of satisfaction C. For each additional quantity of carrot consumed, Donald must give up 1/2 of donuts to maintain the same level of satisfaction D. For each additional quantity of carrot.consumed, Donald must give up 1/9 of donuts to maintain the same level of satisfaction E. For each additional quantity of donuts consumed. Donald must give up 1/2 of carrots to maintain the same level of satisfaction. F. For each additional quantity of carrots consumed, Donald must give up 9 units of donuts to maintain the same level of satisfaction G. For each additional quantity of donüts consumed. Donald must give up 1/9 of carrots to maintain the same level of satisfaction H. For each additional quantity of donutS consumed. Donald must give up 9 units of carrots to maintain the same level of satisfaction
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter20: Consumer Choice: Maximizing Utility And Behavioral Economics
Section: Chapter Questions
Problem 5WNG
Related questions
Question
Transcribed Image Text:Donald derives utility from only two goods, carrots (X) and donuts (Y). His utility
0.1 0.9
function is as follows: U(X,Y) =X Y Donald has an income (M) of $900 and the price of carrots (P,)
and donuts (P,) are $45 and $90 respectively Based on this information, what does the slope of the
indifference curve for Donald tell us.
Select one:
A. For each additional quantity of carrot consumed, Donald must give up 0.25 of donuts to
maintain the same level of satisfaction
B. For each additional quantity of donuts consumed, Donald must give up 1/2 of carrots to
maintain the same level of satisfaction
C. For each additional quantity of carrot consumed, Donald must give up 1/2 of donuts to maintain
the same level of satisfaction
D. For each additional quantity of carrot consumed, Donald must give up 1/9 of donuts to maintain
the same level of satisfaction
E. For each additional quantity of donuts constumed. Donald must give up 1/2 of carrots to
maintain the same level of satisfaction.
F. For each additional quantty of carrots consumed. Donald must give up 9 units of donuts to
maintain the same levelof satisfaction
G. For each additional quantity of donuts consumed, Donald must give up 1/9 of carrots to
maintain the same level of satisfaction
H. For each additional quantity of donuts consumed. Donald must give up 9 units of carrots to
maintain the same level of satisfaction
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
