Some people do not care about the difference between two similar products. To see what effect this would have on their behavior, draw a typical indifference curve of a man who values white and whole wheat bread identically. Show his consumption equilibrium position when the price of white bread is held constant at $1.00 a loaf while that of whole wheat changes from $.80 to $1.20.
Added by Raul M.
Step 1
An indifference curve represents a set of bundles of goods between which a consumer is indifferent. In this case, the man values white bread and whole wheat bread identically, so his indifference curves will be straight lines with a slope of -1, indicating a Show more…
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