A cross-country runner is willing to trade four one-quart bottles of Gatorade (Q) for a one-gallon bottle
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A cross-country runner is willing to trade four one-quart bottles of Gatorade (Q) for a one-gallon bottle of Gatorade (G). Both goods make the runner happy and her preferences for Gatorade do not change along her indifference curve (IC).
(i) Sketch an IC on a two-dimensional diagram that shows the runner's preferences for Gatorade.
(ii) Carefully show if the runner's IC exhibits a diminishing, increasing, or constant marginal rate of substitution. Given your answer, what type of goods are gallon and quart bottles of Gatorade; perfect complements, imperfect substitutes, or perfect substitutes?
Related Book For
Intermediate Microeconomics and Its Application
ISBN: 978-1133189039
12th edition
Authors: Walter Nicholson, Christopher M. Snyder
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