Question

Your classmate tells you that he is indifferent between three soft drinks and two hamburgers or two soft drinks and three hamburgers.

a. Draw a rough diagram of an indifference curve containing your classmate's consumption choices.

b. Suppose that your classmate states that he is also indifferent between two soft drinks and three hamburgers or one soft drink and four hamburgers, but that he prefers three soft drinks and two hamburgers to one soft drink and four hamburgers. Use your diagram from part (a) to reason out whether he can have these preferences.

Short answer

a. the graph is drawn

b. No, the classmate should be indifferent to the preferences

Step-by-step solution

Given Information

The indifference curve addresses a mix of merchandise that provide the clients with a similar degree of fulfilment. The shoppers are not interested in the utilization of merchandise that fall on a given aloofness bend.

Explanation Part (a)

The diagram is,

Explanation Part (b)

The diagram is,

It very well may be derived that decisions A, B and C all lie on a similar detachment bend. Hence, the classmate should be indifferent between these three decisions. The client should have well-behaved inclinations. Thusly, it isn't feasible for him to lean toward one group over another assuming that they fall on a similar indifference curve.