Question
Fred and Stan are two brothers who each have preferences over the activities watching movies (M), and drag racing (D). They are very different in
Fred and Stan are two brothers who each have preferences over the activities watching movies (M), and drag racing (D). They are very different in how they view these activities. Fred enjoys both activities and derives pleasure from Drag Racing. Stan, on the other hand, is afraid of drag racing, and regards it as a bad. In fact, to get him to engage in more drag racing, Fred would have to offer him a chance to see more movies. In all other details they follow the preference axioms. Given these facts sketch 2 indifference curve maps, one for each brother. Please put D on the horizontal axis. Be sure to show for each the direction in which utility increases on the graph and state whether the MRS is increasing, decreasing or constant.
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