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Suppose that Frank and Erin have each decided to allocate part of their sports budget to...

  1. Suppose that Frank and Erin have each decided to allocate part of their sports budget to skiing (X) and snowboarding (Y). They both like skiing and snowboarding and will choose to consume positive quantities of both goods. Assume that they both have convex preferences. However, they have different preferences for these two sports. Frank prefers skiing to snowboarding, and Erin prefers snowboarding to skiing.
    1. For each person, draw a set of indifference curves, placing skiing on the horizontal axis and snowboarding on the vertical axis. Use one graph per person.

  1. Using the concept of MRS of skiing for snowboarding, explain why the two sets of curves are different from each other.
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