Recall that Tommy Twit's mother measures the departure of any bundle from her favorite bundle for Tommy by the sum of the absolute values of the differences.Her favorite bundle for Tommy is (2, 7), that is, 2 cookies and 7 glasses of milk.Tommy's mother's indifference curve that passes through the point (c, m) = (5, 4)also passes through
A)the points (5, 7), (2, 4), and (2, 10).
B)the points (2, 1), (8, 7), and (5, 10).
C)the point (8, 1).
D)the point (2, 7).
E)None of the above.

Question

Quizplus · Accepted Answer

Since the indifference curve passes through (5,4), this means that the difference between 5 cookies and 2 cookies plus the difference between 4 glasses of milk and 7 glasses of milk equals the departure from Tommy's mother's favorite bundle. So, we have:

|5-2| + |4-7| = 6

This means that any point (c,m) on the same indifference curve must also satisfy:

|c-2| + |m-7| = 6

The only points that satisfy this equation are (2,1), (8,7), and (5,10), which are all on the same indifference curve as (5,4). Therefore, the answer is B. The point (2,7) is Tommy's mother's favorite bundle, so it does not necessarily have to be on the same indifference curve as (c,m).

Recall That Tommy Twit's Mother Measures the Departure of Any