Question
The prices of goods x and y are each $1. Jane has $20 to spend and is considering choosing 10 units of xand 10 units
The prices of goods x and y are each $1. Jane has $20 to spend and is considering choosing 10 units of xand 10 units of y.
Jane has strictly convex preferences and more of each good is better for her. Where x is drawn on the horizontal axis and yis drawn on the vertical axis, the slope of
her indifference curve at the bundle (10, 10) is -0.5
a.The bundle (10, 10) is the best she can afford.
b.She would be better off consuming more of good xand less of good y.
c.She would be better off consuming more of good y and less of good x.
d.She must dislike one of the goods.
e.More than one of the above is true'
The answer is C I just don't understand why
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