If we graph Mary Granola's indifference curves with avocados on the horizontal axis and grapefruits on the vertical axis, then whenever she has more grapefruits than avocados, the slope of her indifference curve is 22.Whenever she has more avocados than grapefruits, the slope is 21/2.Mary would be indifferent between a bundle with 14 avocados and 20 grapefruits and another bundle that has 26 avocados and
A)11 grapefruits.
B)18 grapefruits.
C)6 grapefruits.
D)16 grapefruits.
E)13.5 grapefruits.

Question

Quizplus · Accepted Answer

The slope of the indifference curve changes based on the relative quantities of avocados and grapefruits. For the bundle (14 avocados, 20 grapefruits), the slope is 22 because grapefruits are more than avocados. For the bundle (26 avocados, x grapefruits), avocados are more, so the slope is 21/2. Solving the equation 22*(20-x) = 21/2*(26-14) gives x = 11.

If We Graph Mary Granola's Indifference Curves with Avocados on the Horizontal