Suppose Harry and Hermione are shipwrecked on the deserted tropical island ofZabini. The quantity of coconuts and magical spells on the island are in fixedsupply. The Edgeworth box below shows all the possible allocations of these twogoods and can be used to answer the questions below.For each statement below, note whether the statement is true or false and provide abrief justification.(1) If Hermione is more skilled at spells than Harry, then Harry prefersA to B. True or False?CoconutsHermioneBMagicalspellsHarry

An indifference curve is a graph showing various combinations of two goods that give equal satisfaction (utility) to an individual. It represents the combinations of two goods that a consumer considers equally desirable.False Explanation:If Hermione is more skilled at spells, then she will value spells more than Harry. Therefore, she will prefer to have more spells, even if it means having fewer coconuts. As a result, Hermione will prefer point A to point B. Point A shows more spells and lesser coconuts. A person good at spells like Hermoine will prefer more spells and hence point A as B shows lesser spells than A. Harry, on the other hand, will prefer point B to point A, because he values coconuts more than spells. Therefore, the statement "If Hermione is more skilled at spells than Harry, then Harry prefers A to B" is False .If Hermione is more skilled at spells than Harry, then Harry prefers A to B is FALSE .

Answered: Suppose Harry and Hermione are…

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter6: Demand Relationships Among Goods

Section: Chapter Questions

Problem 6.13P

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Suppose Harry and Hermione are shipwrecked on the deserted tropical island of
Zabini. The quantity of coconuts and magical spells on the island are in fixed
supply. The Edgeworth box below shows all the possible allocations of these two
goods and can be used to answer the questions below.
For each statement below, note whether the statement is true or false and provide a
brief justification.
(1) If Hermione is more skilled at spells than Harry, then Harry prefers
A to B. True or False?
Coconuts
Hermione
B
Magical
spells
Harry

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