Dina likes to eat toast with hazelnut spread and drink wine. She enjoys these items in very
Question:
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Dina likes to eat toast with hazelnut spread and drink wine. She enjoys these items in very specific proportions: For every piece of toast with hazelnut spread she eats, she drinks exactly one glass of wine, and vice versa.Dina can purchase the hazelnut spread for her toast in two jar sizes: 20 ounces and 40 ounces. Dina cares only about the total amount of hazelnut spread she has available and not at all about the jar size. In other words, she's just as happy with two 20-ounce jars as she is with one 40-ounce jar.
In this scenario, toast with hazelnut spreadand glasses of wineare .
Two possible bundles of toast with hazelnut spread and glasses of wine are shown on the following graph, labeled A and B.
Using three purple points (diamond symbol), plot Dina's indifference curve that passes through point A (I1). Then, using three orange points (square symbol), plot Dina's indifference curve that passes through point B (I2).
Hint: To plot both indifference curves, place one point on the edge of the graph, another point oneither point A or B respectively, and the final point on another edge of the graph.
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