Assuming that good "x" is measured on the x-axis and good "y" is measured on the y-axis,if the utility for the two goods "x" and "y" can be measured as U = x,then it can be concluded that
A) "x" and "y" are perfect complements.
B) "y" is a "bad".
C) the indifference curves on the x,y graph are upward sloping.
D) the indifference curves on the x,y graph are vertical.

Question

Quizplus · Accepted Answer

The utility function U = x indicates that utility depends solely on the quantity of good x, with no regard for good y. This means that the consumer's satisfaction increases with more of good x and is unaffected by changes in the quantity of good y. Therefore, indifference curves, which represent combinations of goods x and y that give the consumer the same level of utility, will be vertical lines. This is because moving along a vertical line changes the quantity of good y while keeping the quantity of good x constant, which does not affect the consumer's utility according to the given utility function.

Assuming That Good "X" Is Measured on the X-Axis and Good