Question
Mark is in front of an automatic soft drink machine.The machine needs specific money and does not give change.You need 2 coins of 50 cents
Mark is in front of an automatic soft drink machine.The machine needs specific money and does not give change.You need 2 coins of 50 cents and 1 of 20 cents.No other combination gives a soft drink.Draw some indifference curves to the coins Mark holds to consume soft drinks.
A. If he has 2 coins of 50 cents and 1 of 20 cents he will get a soft drink.If he has 4 coins of 50 cents and 2 of 20 cents, how many soft drinks will he get?
B. Draw in red the area where Mark is indifferent to the combination of 2 coins of 50 cents and 1 of 20 cents.Draw in blue the area where Mark is indifferent to the combination of 4 coins of 50 cents and 2 of 20 cents.
C. Does it have curved preferences between 50 cent and 20 cent coins?
D. Does Mark always prefer more than both coins?
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