Question
Consider a vegetarian's preferences over lentils and chicken. He always prefers more lentils to less. On the other hand, he does not care at all
Consider a vegetarian's preferences over lentils and chicken. He always prefers more lentils to less.
On the other hand, he does not care at all about chicken, i.e., he gets no utility out of eating chicken.
Given two consumption bundles of lentils and chicken, he will simply choose the one with more lentils,
no matter what the amounts of chicken in the two bundles are.
a)Draw this vegetarian's indifference curves between the two goods, with the amount of chicken
consumed measured on the horizontal axis and the amount of lentils consumed measured on the
vertical axis. (Don't draw just explain)
b)If the vegetarian's weekly budget for food is $200 and chicken and lentils cost $2 and $1.5 per
pound, respectively, what will his optimal consumption choice be? Explain your answer with a
diagram. (Just explain no drawing)
c) Now, suppose the vegetarian becomes allergic to chicken. Will your answers to part a) and b)
change?
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