Vertical axis and the income of oscar on the horizontal axis

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Reference no: EM13998727

Measure the income of Samantha on the vertical axis and the income of Oscar on the horizontal axis.

Draw several of Sam’s indifference curves under the following circumstances.

a. Sam doesn’t care about Oscar’s income, but the higher her own income is, the better off she is.

b. Sam considers both her own income and Oscar’s income to be economic “goods,” but only as long as her income exceeds Oscar’s. When Oscar’s income exceeds hers, Sam considers Oscar’s income to be an economic “bad.”

c. If Sam’s preferences relating her own income and Oscar’s income conform to the Golden Rule (“Love thy neighbor as thyself”), what would her indifference curves look like?

Reference no: EM13998727

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