An island economy produces only two goods, coconuts and pineapples. There are four people (A, B, C, and D) living on the island with the following preferences. Construct a set of indifference curve for each individual with pineapples on the vertical axis and coconuts on the horizontal axis. a. A likes both but has a strong preference for pineapples. b. B also likes both but has a strong preference for coconuts. c. C likes coconuts but doesn’t care for pineapples. d. D will only consume pineapples and coconuts in the fixed proportion of one pineapple to one coconut.
An island economy produces only two goods, coconuts and pineapples. There are four people (A, B, C, and D) living on the island with the following preferences. Construct a set of indifference curve for each individual with pineapples on the vertical axis and coconuts on the horizontal axis. a. A likes both but has a strong preference for pineapples. b. B also likes both but has a strong preference for coconuts. c. C likes coconuts but doesn’t care for pineapples. d. D will only consume pineapples and coconuts in the fixed proportion of one pineapple to one coconut.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter20: Consumer Choice: Maximizing Utility And Behavioral Economics
Section: Chapter Questions
Problem 5QP
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An island economy produces only two goods, coconuts and pineapples. There are four people (A, B, C, and D) living on the island with the following preferences. Construct a set of indifference curve for each individual with pineapples on the vertical axis and coconuts on the horizontal axis.
a. A likes both but has a strong preference for pineapples.
b. B also likes both but has a strong preference for coconuts.
c. C likes coconuts but doesn’t care for pineapples.
d. D will only consume pineapples and coconuts in the fixed proportion of one pineapple to one coconut.
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