Answer to Question #184095 in Microeconomics for Momin ali

Question

Draw indifference curves for the given conditions;

a. A consumer dislikes burgers but loves coke. If she offered by someone a burger or coke 

she might drink coke but waste burger.

b. Molly went in a restaurant and ordered pizza with coke because she requires both of the 

goods at the same time.

c. Ash prefers coffee and tea at the same time

Answer 1

a)

If someone offered the consumer one extra burger for every coke he gave up he wouldn't want that. But if for every burger he gave out he would get an extra coke he would accept the offer. At the current consumer level, the consumer's exchange rate would be 2 burgers for 1 coke.

b)

Coke and pizza are complements since they have to be taken at the same time. Indifference curve for complements have right angles because they complement each other.

c)

Coffee and tea are substitutes thus one unit of one good is just as good as one unit of the other good