1.1. Tom has relatively strong preferences for downloadable songs (S), and Helen has (relative to Tom) strong preferences for the other good, DVD movies (M). In a diagram with S on the vertical axis and M on the horizontal axis, draw an indifference curve for each consumer. Assume they both have identical initial bundles of S and M.
2007-02-06 09:25:55 · 1 answers · asked by Razy_04 2 in Social Science ➔ Economics
draw coordinate (m,s) and a point in middle for initial value s and m.
sketch (lightly) two straight lines with different slopes thought point
Now draw indifference curve which are almost parallel to your straight lines near the point.
the slope of the curves=ds/dm so for Tom it will take a lot of dm to balance a small amount ds so he will be the smaller slope, that is the more horizontal curve
2007-02-06 15:41:15 · answer #1 · answered by meg 7 · 1⤊ 0⤋