Draw each individuals indifference curves

Reference no: EM131258989

Chris likes scotch much more than cigars, while Angelo prefers cigars to scotch. The prices of scotch and cigars are Ps = $5 and Pc = $10. Both individuals have an income of $100. Place scotch on the horizontal axis.

a. On one graph, draw each individual's indifference curves and carefully explain how each curve represents their respective preferences for scotch.

b. At their respective utility maximization point, will their respective MRSSC be equal? Illustrate and explain your answer.

Reference no: EM131258989

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