[Uses the Indifference Curve Approach] With the quantity of popcorn on the vertical axis and the quantity of ice cream on the horizontal axis, draw indifference maps to illustrate each of the...



[Uses the Indifference Curve Approach] With the


quantity of popcorn on the vertical axis and the


quantity of ice cream on the horizontal axis, draw


indifference maps to illustrate each of the following


situations. (Hint: Each will look different from the


indifference maps in the appendix, because each


violates one of the assumptions we made there.)


a. Larry’s marginal rate of substitution between ice


cream and popcorn remains constant, no matter


how much of each good he consumes.


b. Heather loves ice cream but hates popcorn.



May 26, 2022
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