Mark is in front of an automatic soft drink machine. The machine needs specific money and does not give change. You need 2 coins of 50 cents and 1 of 20 cents. No other combination gives a soft drink. Draw some indifference curves to the coins Mark holds to consume soft drinks. A. If he has 2 coins of 50 cents and 1 of 20 cents he will get a soft drink. If he has 4 coins of 50 cents and 2 of 20 cents, how many soft drinks will he get? B. Draw in red the area where Mark is indifferent to the combination of 2 coins of 50 cents and 1 of 20 cents. Draw in blue the area where Mark is indifferent to the combination of 4 coins of 50 cents and 2 of 20 cents. C. Does it have curved preferences between 50 cent and 20 cent coins?
Mark is in front of an automatic soft drink machine. The machine needs specific money and does not give change. You need 2 coins of 50 cents and 1 of 20 cents. No other combination gives a soft drink. Draw some indifference
A. If he has 2 coins of 50 cents and 1 of 20 cents he will get a soft drink. If he has 4 coins of 50 cents and 2 of 20 cents, how many soft drinks will he get?
B. Draw in red the area where Mark is indifferent to the combination of 2 coins of 50 cents and 1 of 20 cents. Draw in blue the area where Mark is indifferent to the combination of 4 coins of 50 cents and 2 of 20 cents.
C. Does it have curved preferences between 50 cent and 20 cent coins?
D. Does Mark always prefer more than both coins?
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