Question

Suppose that a consumer's utility function is u(x, y) = x, defined for all bundles such that x > 0 and y > 0. For any given positive level of utility, the corresponding indifference curve is O strictly convex. a vertical line. O a horizontal line. a line that is neither horizontal nor vertical.

Answer 1

The answer is option b) a vertical line.

If U(x,y) = x then , it doesn't matter what is the Consumption of good y, utility will always be equal to Consumption of x . An indifference curve is a set of bundles that give you the same level of utility. Therefore , all the points at a given value of x =k for any value of y will give the utility k and hence represent an indifference curve which will be a vertical line.

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