Mary has standard indifference curves (convex). She always buys 3 pounds of coffee each month. Even...

Mary has standard indifference curves (convex). She always buys 3 pounds of coffee each month. Even when the price of coffee doubles, Mary buys 3 pounds of coffee.

(a) What is Mary’s price elasticity for coffee?

(b) Plot Mary’s indifference curves. Plot coffee on the horizontal axis and money to spend on other goods on the vertical.

Expert Solution

Rahul Sunny answered 9 months ago

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