Determine whether bob and ray have identical tastes

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Reference no: EM13887745

Bob and Ray buy only two goods, ice cream and root beer. They both get their root beer at Root Beer City, where they pay $1 a bottle. Bob is indifferent between the baskets (1, 3) and (2, 2). Ray is indifferent between the baskets (2, 2) and (3, 1). They each purchase the basket (2, 2).

a) Can you determine whether Bob and Ray have identical tastes?

b) Can you determine who pays a higher price for ice cream? Justify your answer with indifference curves.

Reference no: EM13887745

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