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For lunch, Ada prefers to eat soup and bread in fixed proportions. When she eats X pints of soup, she prefers to eat 2X ounces of bread. If she has X pints of soup and more than 2X ounces of bread, she eats all the soup along with 2X ounces of bread and throws the extra bread away. If she has 2X ounces of bread and more than X ounces of soup (say Y ounces), she eats all the bread along with X ounces of soup and throws the extra soup away. Draw Ada's indifference curves between soup and bread.

User Lalibi
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Answer:

Ada's indifference curves between soup and bread is an example of Perfect Complement Indifference Curve.

Step-by-step explanation:

Note: See the attached photo for Ada's indifference curves between soup and bread with pints of soup on the vertical axis and ounces of bread on the horizontal axis.

Ada's indifference curves between soup and bread is an example of Perfect Complement Indifference Curve.

The way soup and bread are described in the question, it implies they are complements.

When two goods are perfect complements, their indifference curve (IC) will be right-angled or L shaped as drawn in the attached photo.

The IC implies that soup and bread are consumed by Ada in fixed proportions or ratio which in this case is 1:2.

From the attached file, Ada has to consume 1 pint of soup and 2 ounces of bread at point A to be on the IC1. To be on IC2, she has to consume 2 pint of soup and 4 ounces of bread at point B to maintain the fixed ratio "1:2 = 2:4". Also, to be on IC3, she has to consume 3 pint of soup and 6 ounces of bread at point C to still maintain the fixed ratio "1:2 = 3:6", and so on.

Therefore, an increase in the consumption of either soup or bread without a proportional increase in the consumption of the other good that maintains the fixed proportion will not give Ada additional utility that can take her to a higher indifference curve.

For lunch, Ada prefers to eat soup and bread in fixed proportions. When she eats X-example-1
User Goran Martinic
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