Microecon: preferences?

Question

if it is an upward sloping curve between two goods, what kind of preferences is that? i don't really understand how to qualify that or what the different kinds of preferences there are

Answer 1

Seems to me like you are plotting risk against return. In finance, we encounter a similar type of indifference curve as well, except the axis are specifically risk vs return.

Mathematically, I think such indifference occur due to the linear relationship between Good X and Good Y.

Sorry, apologize, technically, it should be labelled as Good X and 'Bad' Y, or the other way round, as upward sloping indifference curve automatically implies that one of the 'goods' is an economic bad.

Answer 2

Upward sloping curve means positive correlation between variables - if it consumption then usually upward sloping curve means that both goods are complementary goods, or these goods are positively affected by income level. There are too many options, you should tell what sort of variables are given by axises.

Added:

Well - with additional info it's now easier:

Just take few combinations for instance L(box of lenses) S(solution) could be consumed in following combinations:

S=0 L=0

S=1 L=2

S=2 L=4

...

etc.

To draw line you need only two points for instance (0;0) and (2;4)

Equation for line will look following L=b+aS

So solve system of equations to find 'a' and 'b':

0=b+a*0

4=b+a*2

Derive b from first:

0=b+a*0

0=b

and put it into second:

4=0+a*2

4=2a

a=2

And here is your equation:

L=0+2*S or simplify to

L=2S

Now utility function - since relation is linear then utility is represented by U(S;L)=αS+βL

In this case utility function is U(S;L)=2S+L and bundles are given by L=2S

P.S. I might be wrong b/c my specialization is macroeconomics - not micro.