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Question: s indifference curves susan is presented with the following bundles...

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s. Indifference curves Susan is presented with the following bundles of apples and oranges, and she divides the bundles into three groups, as shown. She claims that within each group she likes each bundle equally well, but that this is not so between groups Group A Group B Group C apples oranges apples Apples oranges 20 oranges 20 20 10 1 20 26 10 12 12 1 2 10 10 2 2 a. Accurately raw Susans indifference map. Use straight-line segments to draw indifference b. Suppose Susans income were $6. Initially oranges cost 30d each and apples cost 30d also. Draw C. Suppose Susans income were $6. Initially oranges cost 30d each and apples cost 30 also. Draw d. Suppose the price of apples falls to 20d. What bundle is purchased now? Is Susans utility higher e. Suppose the price of apples were to rise to 6od each. What bundle is purchased now? How does f. Suppose now that prices return to 30d for each type of fruit, but Susans income falls to $4.20. g. Now inflation sets in. The prices of apples and oranges both double to 6od. Fortunately for curves. Indicate which indifference curve has the highest utility level and which has the lowest the budget constraint. What bundle does Susan purchase? the budget constraint. What bundle does Susan purchase? or lower than in b? Susans utility compare with b and c? What bundle will she buy? Are apples a normal good for Susan? Susan, her income rises to $12. What bundle does she buy now? Is she better or worse off than in

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