Question

6. a. Suppose Elizabeth enjoys the ballet but totally indifferent toward opera. Please draw Elizabeth's indifference map showing ballet tickets on the y axis and opera tickets on the x axis. Please explain your reasoning for drawing the specific shape of the indifference curves. (6 points) b. Please draw an indifference map by putting pollution on the horizontal axis and pizza on the vertical axis. Please explain your reasoning for drawing the specific shape of the indifference curves. (6 points) dlaha

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Answer 1

Y= ballet (good) - X= opera (indifferent) Coca when I co seould be straight lines (horizontal) | As we move upwards along the I utility will increase. Y- aris ميm سه و کهدم | | 2 21 A&B pts on it, will give the same utility as aty of IY is the same, even though aty of x is more in B. (6 x= Pollution (bad good) Y = Pigga (good good)

as Pollution is bad for health, x An individual will always prefer I to X. (Pizza is letter than is a bad you more of pollution) | Hence, Y and utility will consume increase as we move towards move and mothe of Y. ic,> 1C2>1c, our As we have higher qy of Pollution, utility will fall. letility increases in the direction of the arrow

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