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Hrishita likes sandwiches (S) and coffee (C). Her indifference curves are bowed in toward the origin and do not intersect the axes . the price of a sandwich is Rs 5 and the price of a cup of coffee is Rs 3. She is spending all her income at the basket she is currently consuming, and her marginal rate of substitution of sandwiches for coffee is 2.
Is she at an optimum ? If so, show why. If not, should she buy fewer sandwiches and more coffee, or the reverse ? (15 Marks) (200 words)
By: Jyoti Das ProfileResourcesReport error
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