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Math Help - Economics Help: Indifference Curves

  1. #1
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    Exclamation Economics Help: Indifference Curves

    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. Davidís 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
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  2. #2
    MHF Contributor
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    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.
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