Suppose there are two types of Scottish beer
Question # 00390199
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Updated on: 09/19/2016 09:13 AM Due on: 09/19/2016

Suppose there are two types of Scottish beer, Skullsplitter and Dragonhead Stout. Draw indifference curves for the following consumers (put Skullsplitter on the x-axis and Dragonhead Stout on the y-axis). a. Angus likes variety and prefers to drink Skullsplitter and Dragonhead Stouttogether. b. Hamish dislikes variety; he likes to drink the same thing all the time. c. Tam only cares about the alcohol content in his drink; he wants to drink the beerthat contains as much alcohol as possible. Suppose that Skullsplitter has 5%alcohol content and Dragonhead Stout has 10% content. What do Tam’sin difference curves look like?d. If Archibald’s indifference curves are upward sloping, what does this say about Skullsplitter and Dragonhead Stout for him?

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Solution: Suppose there are two types of Scottish beer