For Robinson, coconuts and berries are complements. He always consumes them with his favorite proportion: 2 pounds of berries for 1 coconut. More berry and coconut consumption makes him happier. Consider that Robinson sleeps 8 hours, and spares 2 hours to eat what he collects. 1. Draw Robinson’s indifferent curves. Show the direction of better bundles. 2. Draw Robinson’s budget line. Assume that he does not have any injuries. (Collects a coconut in 2 hours, and a pound of berries in an hour) 3. Find the best ‘affordable’ (coconut, berry) bundle for Robinson, and show it on the graph.
For Robinson, coconuts and berries are complements.
He always consumes them with his favorite proportion: 2 pounds of berries for 1 coconut. More
berry and coconut consumption makes him happier. Consider that Robinson sleeps 8 hours, and
spares 2 hours to eat what he collects.
1. Draw Robinson’s indifferent
2. Draw Robinson’s budget line. Assume that he does not have any injuries. (Collects a coconut
in 2 hours, and a pound of berries in an hour)
3. Find the best ‘affordable’ (coconut, berry) bundle for Robinson, and show it on the graph.
An indifference curve refers to a graphical representation of different combinations of two goods that give a consumer the same level of satisfaction or utility. In other words, an indifference curve shows all the combinations of two goods that provide the same level of satisfaction or utility to a consumer, regardless of the specific quantities of each good.
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