Question

If jerry cannot tell the difference at all between coke and pepsi, what would jerry’s indifference curves for coke and pepsi look like?

Answer 1

Jerry's indifference curves would be straight lines with slope minus one. An indifference curve is a plot of several curves on an x-y graph where the points in this case represent packages containing a certain amount of Coke and a certain amount of Pepsi. If Jerry wants 10 L of cola and cannot tell the difference between Coke and Pepsi, he will accept any combination of these two sodas as long as the total volume is 10 L. The corresponding points all satisfy the equation x + y = 10, therefore the graph of x + y = 10 may be drawn in an indifference chart.