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Sheldon consumes only hamburgers (H) and milkshakes (M)

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Sheldon consumes only hamburgers (H) and milkshakes (M). At basket A, containing 2 hamburgers and 10 milkshakes, his MRS_HM is 8. At basket B, 6 hamburgers and 4 milkshakes, his MRS_HM is ½. Both baskets A and B are on the same indifference curve. Draw the indifference curve and us the information about the MRS_HM to make sure that the curvature is accurately depicted.

- Suppose there are two consumers, Hillary and Donald. Both consumers’ preferences satisfy the four standard assumptions and both consumers like both types of food. However Donald prefers Mexican food (particularly from a food truck) over Middle Eastern food and Hillary prefers Middle Eastern food over Mexican food. Sketch an indifference curve for each consumer with Mexican food on the horizontal axis and Middle Eastern food on the vertical axis. To make comparison easier, you can draw both consumer’s indifference curves on the same diagram. How do Hillary and Donald’s MRS_Mex,Mid compare to one another? Do you expect the shapes of these indifference curves to differ? Explain why you drew the indifference curves the way you did.