Question

Consider a consumer who goes to movies. While at the movie the consumer wishes to purchase popcorn. The income available with him is $50.
a. Explain the shape of the indifference curve using diagrams [3 MARKS]
b. Why does the consumer spend the entire budget? Explain the choice of consumer on the diagram [2 MARKS

Answer 1

Answer:

Consider a consumer who goes to movies. While at the movie the consumer wishes to purchase popcorn. The income available with him is $50.

a. Explain the shape of the indifference curve using diagrams [3 MARKS]

b. Why does the consumer spend the entire budget?Consider a consumer who goes to movies. While at the movie the consumer wishes to purchase popcorn. The income available with him is $50.

a. Explain the shape of the indifference curve using diagrams

b. Why does the consumer spend the entire budget? Explain the choice of consumer on the diagram

Expert's answer Explain the choice of consumer on the diagram [2 MARKS