A consumer consumes two goods: wraps and tea, with respective quantities x1 and x2. Suppose the price of a wrap is $5 and the price of a cup of tea is $1. The consumer's weekly income is m = $70. Suppose the consumer can go to two different restaurants which sell wraps and tea, M or N. At restaurant M, for every 5 wraps consumed in a week, the customer receives one free wrap. At restaurant N, for the first fi ve teas consumed in a week, a customer receives two free teas (after that any additional tea is sold at the regular price). Plot an example indiff erence curve of a consumer who would optimally choose to go to restaurant M. Do the same for restaurant N (plot a di fferent example indiff erence curve). Help me
A consumer consumes two goods: wraps and tea, with respective quantities x1 and x2. Suppose the price of a wrap is $5 and the price of a cup of tea is $1. The consumer's weekly income is m = $70.
Suppose the consumer can go to two different restaurants which sell wraps and tea, M or N. At restaurant M, for every 5 wraps consumed in a week, the customer receives one free wrap. At restaurant N, for the first fi ve teas consumed in a week, a customer receives two free teas (after that any additional tea is sold at the regular price).
Plot an example indiff erence curve of a consumer who would optimally choose to go to restaurant M. Do the same for restaurant N (plot a di fferent example indiff erence curve).
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