Microeconomics

5. Complements and substitutes Sean enjoys eating jelly sandwiches and drinking soda. He is particular about proportions, though: For every jelly sandwich he eats, he must drink exactly one glass of soda and vice versa. Sean can purchase the jelly for his sandwiches in two jar sizes, 500 grams and 1,000 grams. Sean cares only about the total amount of jelly he has available and not at all about the jar size. In other words, he's just as happy with two 500-gram jars as he is with one 1,000-gram jar. In this scenario, jelly sandwiches and glasses of soda are Two possible bundles of jelly sandwiches and glasses of soda are shown on the following graph, labelled A and B. Using three purple points (diamond symbol), plot Sean's indifference curve that passes through point A (1 ). Then, using three orange points (square symbol), plot Sean's indifference curve that passes through point B (12 ). Hint: To plot both indifference curves, place one point on the edge of the graph, another point on either point A or B respectively, and the final point on another edge of the graph.