Asked by Malusi Pakade on May 01, 2024
Verified
recall that Tommy Twit's mother measures the departure of any bundle from her favorite bundle for Tommy by the sum of the absolute values of the differences.Her favorite bundle for Tommy is (2, 7) , that is, 2 cookies and 7 glasses of milk.Tommy's mother's indifference curve that passes through the point (c, m) (5, 4) also passes through
A) the point (8, 1) .
B) the points (2, 1) , (8, 7) , and (5, 10) .
C) the point (2, 7) .
D) the points (5, 7) , (2, 4) , and (2, 10) .
E) None of the above.
Absolute Values
A measure representing the magnitude of a number regardless of its direction or sign, shown as the distance from zero on a number line.
Favorite Bundle
An individual consumer's most preferred combination of goods and services, given their budget and prices.
- Acquire knowledge about the theory of indifference curves and their corresponding equations.
- Acknowledge the depth of consumer decision processes by illustrating their preferences visually.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
B
Explanation :
Since the indifference curve passes through (5,4) and (2,7), it means that the difference in the number of cookies and milk in both points is the same. Therefore, any other point on this indifference curve must also have the same difference in the number of cookies and milk as (5,4) and (2,7).
Option A: (8,1) has a difference of 7 in the number of cookies and milk, which is not the same as the difference in (5,4) and (2,7).
Option B:
- (2,1) has a difference of 1 in the number of cookies and milk, which is the same as the difference in (5,4) and (2,7).
- (8,7) has a difference of 1 in the number of cookies and milk, which is the same as the difference in (5,4) and (2,7).
- (5,10) has a difference of 3 in the number of cookies and milk, which is the same as the difference in (5,4) and (2,7).
Therefore, all of these points are on the same indifference curve.
Option C: (2,7) is already given as Tommy's mother's favorite bundle, so it is not on the indifference curve passing through (c,m).
Option D: (5,7) has a difference of 2 in the number of cookies and milk, which is not the same as the difference in (5,4) and (2,7). (2,4) has a difference of 2 in the number of cookies and milk, which is not the same as the difference in (5,4) and (2,7). (2,10) has a difference of 5 in the number of cookies and milk, which is not the same as the difference in (5,4) and (2,7).
Option E: None of the points mentioned in this option have the same difference in the number of cookies and milk as (5,4) and (2,7), so they cannot be on the same indifference curve.
Option A: (8,1) has a difference of 7 in the number of cookies and milk, which is not the same as the difference in (5,4) and (2,7).
Option B:
- (2,1) has a difference of 1 in the number of cookies and milk, which is the same as the difference in (5,4) and (2,7).
- (8,7) has a difference of 1 in the number of cookies and milk, which is the same as the difference in (5,4) and (2,7).
- (5,10) has a difference of 3 in the number of cookies and milk, which is the same as the difference in (5,4) and (2,7).
Therefore, all of these points are on the same indifference curve.
Option C: (2,7) is already given as Tommy's mother's favorite bundle, so it is not on the indifference curve passing through (c,m).
Option D: (5,7) has a difference of 2 in the number of cookies and milk, which is not the same as the difference in (5,4) and (2,7). (2,4) has a difference of 2 in the number of cookies and milk, which is not the same as the difference in (5,4) and (2,7). (2,10) has a difference of 5 in the number of cookies and milk, which is not the same as the difference in (5,4) and (2,7).
Option E: None of the points mentioned in this option have the same difference in the number of cookies and milk as (5,4) and (2,7), so they cannot be on the same indifference curve.
Learning Objectives
- Acquire knowledge about the theory of indifference curves and their corresponding equations.
- Acknowledge the depth of consumer decision processes by illustrating their preferences visually.