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Suppose there are two types of Scottish beer, Skullsplitter and Dragonhead Stout. Draw indifference curves for the following consumers (put Skullsplitter on the x-axis andDragonhead Stout on the y-axis).

a. Angus likes variety and prefers to drink Skullsplitter and Dragonhead Stouttogether.

b. Hamish dislikes variety; he likes to drink the same thing all the time.

c. Tam only cares about the alcohol content in his drink; he wants to drink the beerthat contains as much alcohol as possible. Suppose that Skullsplitter has 5%alcohol content and Dragonhead Stout has 10% content. What do Tam'sindifference curves look like?

d. If Archibald's indifference curves are upward sloping, what does this say aboutSkullsplitter and Dragonhead Stout for him?

Macroeconomics, Economics

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