Question:

Indifference curve?

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so i know that the slope of the indifference curve is the MRS and i know what the equation for MRS is. but how do i find the slope (aka the MRS) for this equation: xA = 100/xB and the slope (MRS) for this equation: xA = 120/xB?

i'm not supposed to evaluate it, just give the equation. but i don't know what that means and i don't know how to do this.

PLEASE HELP!! something to do with partial deriv? i don't get it

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  1. xA = 100/xB

    100xA = xB

    xA/xB = 100 -

    that's your MRS - 100 A for 1 B.


  2. I'm guessing (tell me if I'm wrong) that 100 and 120 are the levels of utility.  So the utility function would be U=(xA)(xB)

    Remember the MRS equation, MRS=U1/U2, where U1 is the derivative of the utility function in terms of xA and U2 is the derivative in terms of xB.

    So, U1=dU/d(xA)=xB*1=xB

    And U2=dU/d(xB)=1*xA=xA

    So MRS=xB/xA

    Did that help?
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