Suppose Caroline is indifferent between tea and coffee as long as she consumes an equivalent amount of caffeine.Suppose that coffee has twice as much caffeine as tea.Which graph would illustrate a representative indifference curve?

Question

Quizplus · Accepted Answer

This is because the slope of the indifference curve for Caroline will be constant as long as the amount of caffeine she consumes remains equal. As coffee has twice the amount of caffeine as tea, the amount of coffee needed to have the same amount of caffeine as tea will be half. Therefore, the indifference curve should be steeper for tea and flatter for coffee. Choice B illustrates this with the steeper indifference curve for tea and the flatter indifference curve for coffee.

Suppose Caroline Is Indifferent Between Tea and Coffee as Long