Reference no: EM132407284

Elmo nds himself at a Coke machine on a hot and dusty Sunday. The Coke machine requires exact change|two quarters (25 cents) and a dime (ten cents). No other combination of coins will make anything come out of the machine. No stores are open; no one is in sight. Elmo is so thirsty that the only thing he cares about is how many soft drinks he will be able to buy with the change in his pocket; the more he can buy, the better. While Elmo searches his pockets, your task is to draw some indierence curves that describe Elmo's preferences about what he nds (use a graph with Quarters on the x-axis and Dimes on the y-axis).

(a) If Elmo has 2 quarters and a dime in his pockets, he can buy 1 soft drink. How many soft drinks can he buy if he has 4 quarters and 2 dimes?

(b) Use red ink to shade in the area on the graph consisting of all combinations of quarters and dimes that Elmo thinks are just indierent to having 2 quarters and 1 dime. (Imagine that it is possible for Elmo to have fractions of quarters or of dimes, but, of course, they would be useless in the machine.) Now use blue ink to shade in the area consisting of all combinations that Elmo thinks are just indierent to having 4 quarters and 2 dimes. Remark that Elmo has indierence bands," not indierence curves.