Question
Last Autumn Donald Trump and Joe Biden ran for US President . Trump and Biden decided to allocate $5,000,000 of their campaign money to purchasing
Last Autumn Donald Trump and Joe Biden ran for US President
. Trump and Biden decided to allocate $5,000,000 of their campaign money to purchasing make-
up specialists and pollsters. Biden preferred pollsters more than makeup specialists, while Trump
preferred to make up specialists more than pollsters.
a). In the same graph, draw sets of indifference curves for Trump and Biden that depict these different
preferences.
b). Discuss why the two sets of curves are different from each other using the concept of
the marginal rate of substitution.
c). If Trump and Biden faced the same prices for these two sets of expert consultants, will their marginal rates of substitution of make-up specialists for pollsters be the same or different at their optimal goods
basket? Assume no corner solutions.
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