Solution To Selected Questions: Chapter 3 Consumer Behavior Worksheet - Chairat Aemkulwat, 2015 Page 2
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6b. Jane loves hamburgers and dislikes soft drinks. If she is served a soft drink, she
will pour it down the drain rather than drink it.
Hamburgers
Since Jane can freely dispose of the soft drink
if it is given to her, she considers it to be a
neutral good. This means she does not care
about soft drinks one way or the other. With
hamburgers
on
the
vertical
axis,
her
indifference curves are horizontal lines. Her
satisfaction increases in the upward direction.
Soft Drinks
c. Bob loves hamburgers and dislikes soft drinks. If he is served a soft drink, he
will drink it to be polite.
Hamburgers
Since Bob will drink the soft drink in order
to be polite, it can be thought of as a
“bad”. When served another soft drink, he
will require more hamburgers at the same
time in order to keep his satisfaction
constant. More soft drinks without more
hamburgers will worsen his utility. More
hamburgers and fewer soft drinks will
Soft Drinks
increase his utility, so his satisfaction
increases as we move upward and to the
left.
d. Molly loves hamburgers and soft drinks, but insists on consuming exactly one
soft drink for every two hamburgers that she eats.
Hamburgers
Molly wants to consume the two goods in
a fixed proportion so her indifference
curves are L-shaped. For a fixed amount
of one good, she gets no extra satisfaction
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from having more of the other good. She
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will only increase her satisfaction if she
has more of both goods.
Soft Drinks
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