Chapter 10A, Problem 1P

To determine

To draw:

A diagram containing, three of Isabella’s indifference curve for the following situations.

Concept Introductions:

Indifference curve: The indifference curve is a line showing all possible combinations of two goods which give the consumers equal satisfaction. In other words the consumer would be indifferent in these points.

Explanation of Solution

1. If we Isabella want four tires for one car her indifference curve will look like the above given graph.



2. In this situation the indifference curves for Isabella will be downward sloping as shown in the above graph



3. In this situation the indifference curve for Isabella will be convex to the origin. This type of indifference curves is normal.



4. The indifference curve for the bindings and skis for Isabella is shown in the above graph.



5. Isabella’s indifference curve for water and soda are given above in the, in this case the indifference curve will be a vertical one.