Question: Draw some hypothetical indifference curves for John Q. Public on a diagram identical to the one you constructed for Test Yourself Question 1. a. Approximately

Draw some hypothetical indifference curves for John Q. Public on a diagram identical to the one you constructed for Test Yourself Question 1.
a. Approximately how many tacos and how many hot dogs will Mr. Public buy?
b. How will these choices change if his income increases to $150? Is either good an inferior good?
c. How will these choices change if the price of a taco rises to $3.00?

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Figure 4 a 25 tacos and 25 hot dogs b Approximately 375 tacos and 375 hot d... View full answer

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