a Shirley Sixpack is in the habit of drinking beer each even

a) Shirley Sixpack is in the habit of drinking beer each evening while watching “The Best of Bowlerama” on TV. She

has a strong thumb and a big refrigerator, so she doesn\'t care about the size of the cans that beer comes in. She only cares about how much beer she has. Draw some of Shirley\'s indifference curves between 16-ounce cans and 8-ounce cans of beer.

b) Lorraine Quiche likes to have a beer while she watches “Masterpiece Theater.” She only allows herself an 8-ounce glass of beer at any one time. Since her cat doesn\'t like beer and she dislikes stale beer, if there is more than 8 ounces in the can she pours the excess into the sink. (She has no moral scruples about wasting beer.) Draw some of Lorraine\'s indifference curves between 16-ounce cans and 8-ounce cans of beer

Solution

a) Shirley will get more utility from 16 cans as compared ot 8 cans of beer and hence 16 cans of beer will lie on a higher indifference curve.

b) Lorraine will be indifferent between two combinations. Hence for her both combinations willl lie on same indifference curve.