an indifference curve shows the combinations of A and B that give the same Utility.
For example, for a utility of 24 utils:
24 = 4A + 4B
6 = A + B
A = 6 - B
that is the equation of a straight line, which you can draw.
Hi guys,
I know this is an economics question but im hoping someone can help me with this question:
David is confused. He has a limited income that he must allocate between his two favourite goods, A and B. David’s utility function for these goods is given by:
U(A,B)=4A+4B.
The price of good A is currently $6 and the price of B is currently $4.
a) Draw a graph indicating the indifference curves corresponding to level of utility equal to 24utils and 36utils.
Can someone help me with drawing this graph?
Your help will be appreciated