Question

If we graph Mary Granola's indifference curves with avocados on the horizontal axis and grapefruits on the vertical axis, then whenever she has more grapefruits than avocados, the slope of her indifference curve is2. Whenever she has more avocados than grapefruits, the slope is 1=2. Mary would be indifferent between a bundle with 11 avocados and 23 grapefruits and another bundle that has 19 avocados and: a) 15 grapefruits. b) 19 grapefruits. c) 11 grapefruits. d) 13 grapefruits.

Answer 1

Avocados are taken on horizontal or x axis and grapefruits are taken on vertical or y axis.

Bundle 1 = 11 avocados and 23 grapefruits

Budle 2 = 19 avocados and y2 grapefruits

Whenever she has more avocados than grapefruits, the slope is -1/2.

Since, movement from bundle 1 to 2 is increasing the number of avocados, slope is -1/2.

slope = (y2 - y1)/(x2 - x1)

-1/2 = (y2 - 23)/(19 - 11)

-1/2 = (y2 - 23)/8

y2 - 23 = -4

y2 = -4 + 23 = 19

So, there will be 19 grapefruits in the bundle 2.

Hence, the correct answer is the option (b).